The SPX spent much of the day working its way
lower, trading within the recent 1775-1746 trading range for one more (last?)
day. After opening lower to 1765.62, the index rebounded to 1772. Following
that initial bounce, the SPX continued lower into mid-afternoon, dropping to
1762.32. The index spent the remainder of the day attempting a recovery that
ultimately fell short of breakeven, but which may have formed a very near term
bullish structure.
The move from Monday’s 1773.44 high to this
afternoon’s 1762.32 low unfolded in a 5 wave sequence. This would appear to be
a corrective wave that followed the rise from 1746.20 to 1773.44. Recall that
my current count has 1746.20 as the termination point of wave 4 from 1646.47,
making 1773.44 wave 1 of 5, and 1762.32 wave 2 of 5 from that low. From today’s
1762.32 low, a wave 1 to 1765.17, and an inverted corrective wave 2 ending at
1765.86 can be counted. This would imply that the SPX is headed higher in near
term.
I am still looking at 1782 as a possible
termination point for the wave from 1646.47. If the SPX reaches that level, it
could mean the end of the sequence from 1074.77. A move above 1787 would likely
mean a continuation of the move higher.
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