It was a relatively quiet day for the markets, following
Friday’s big gains. The SPX opened slightly lower, and moved down to 1793
before rebounding to 1798. Another move lower took the index to 1792, and that
proved to be the low for the day. From that point the SPX rose to 1797 by noon,
paused until mid-afternoon, and then resumed the push higher to 1799.94. From
there the index pulled back to 1797, bounced to 1799, pulled back again to
1797, and then moved back to 1799.77 near the close.
The move today looked like a small continuation of
the wave that started last Thursday afternoon, and carried over into Friday. The
SPX is still within the range to complete a complex corrective wave from
January 29th’s 1770.45 low. In fact it is right at the 1800-1801
resistance level I had talked about on the 28th.
Tomorrow should be an interesting day. I am still
inclined to see the move from 1770.45 to now as a complex corrective wave. This
implies that the SPX will move lower from this point. In my mind this is still
but a pullback in an overall bull market. My downside target remains at 1679.
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