Tuesday, November 26, 2013

Tuesday's Market 11/26/2013

This morning the SPX continued to move higher off yesterday afternoon’s 1800.58 low. The index made it above 1805, and then turned lower, just barely staying above that low at 1800.77. These would turn out to be waves 1, and A of a 5 wave sequence to the upside. The SPX then spent much of the rest of the day completing wave B of the inverted corrective wave 2. This wave formed 5 distinct lower degree waves, with the first carrying the index to 1805.27. After a 2 point pullback, the SPX moved to almost 1807. Following another small pullback the index completed the 5th wave of wave B at 1807.79. The SPX then pulled back to 1806, rose to 1808, and then pulled back to 1807. These formed waves C, D, and E of the inverted corrective wave, and wave 2 from yesterday’s low. Quick moves to 1808.30, 1807.95, and 1808.42 completed the sequence at a new all time high. After spending most of the day trying to move higher, the SPX gave back almost all of its gains in the last half hour, dropping from 1808.42 to 1802.97. This appears to have completed in a 5 wave sequence.


Although the SPX finished little changed from yesterday, it still appears that yesterday’s low marked the end of wave 4 from 1746.20, with today forming waves 1 and at least part of 2 of a the final 5 wave sequence. As I mentioned yesterday, the index could still move lower, to perhaps 1783 without affecting the 1828 final target.


I am still looking for a high between 1828 and 1845 to complete a 5 wave sequence from 1074.77.



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