Tuesday, April 8, 2014

Tuesday's Market 04/08/2014

Since the SPX hit 1882.35 on March 11th, the index has been in a protracted corrective wave that contained many twists and turns. This wave seemingly started off as a simple corrective wave, turned quite complex after dropping to 1839.57. But this complex wave may have ended today at 1837.49.


The most apt description of this wave is a semi-inverted corrective wave. Wave A came quickly with a drop to 1854.38. Wave B was the wave that at times seemed too complex and unusual, but eventually managed to resolve itself with the all time high of 1897.13. Wave C ended Friday at 1863.26, and was followed by an inverted corrective Wave D which ended yesterday at 1852.77. The drop this morning to 1837.49 would seem to complete Wave E, and a 5 wave sequence from the 1882.35 high.

It is now likely that the SPX will again move higher, reaching that 1909 minimum target I have talked about previously. A move below 1837.49 at this point would indicate something else is occurring, with another sequence lower to come.


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