The rally off yesterday morning’s 1837.49 low
continued today, giving credence to the idea of that being an important low.
Looking at the move from that low, the SPX completed a wave 1 at 1850.46. That
was followed by an inverted corrective wave to 1847.67. This correction took
the shape of what is more commonly known as an expanding triangle. From that
point the SPX formed 5 waves up to 1858.38, which was followed by a pullback to
1852.38. Another 5 wave sequence to the upside took the index to 1869.86, and
was again followed by a small pullback, this time to 1866.33. This looks to
complete a more complex inverted corrective wave from the 1850.46 wave 1 high,
which completed as 1847.67-1858.38-1852.38-1869.86-1866.33.
This set-up indicates that there is further upside
to this move. I continue to count this as Wave 5 from the June 2013 1560.33
low. The 1837.49 low yesterday would mark the completion of Wave 2 of 5 from
that point, with a minimum target for Wave 3 of 1909. Once this sequence from
1560.33 completes, it should also complete a sequence from the October 2011
1074.77 low. The minimum target for the completion of this wave is 1957, with
an optimal target of 2001.
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