The SPX opened slightly lower this morning,
dipping to 1874.55 in the first few minutes. Following that dip the index
continued the rally off yesterday’s low. The SPX ran up to 1887, fell back to
1883, and then moved higher to 1889. This has been a pretty impressive rally,
with the SPX moving up 29 points from yesterdays low. After hitting 1889 the
index started to pull back. The SPX moved steadily lower throughout the
afternoon, dropping to 1870.05 before bouncing into the close.
This morning’s run up was unexpected form my point
of view, but may actually turn out to be more bearish than if the decline had
continued this morning. After reviewing my charts, this appears to be a
semi-inverted corrective wave from the 1880.58 low. This means today’s high was
the completion of the second wave from the 1891.33 high. The decline from today’s
high looks to be a 5 wave sequence, and possibly the third wave from 1891. If
the bounce into the close was the fourth wave, the fifth wave would now project
to the 1775 support level.
Resistance is still between 1892 and 1902, and the
1923.
HI Steve
ReplyDeleteYou posted on May6th:
"If my short term count is wrong, there may be support from just below current levels down to 1864. A small pullback into that range, followed by a bounce above 1872.37 could lead to a strong rally". This played out today - Can you comment further on this? Tx - Charlie
Add on to the question: Your initial 1902 target was hit - I'm curious of how today's pullback into this range fits with your larger wave count. Tx
ReplyDeleteHi Charlie,
ReplyDeleteThat analysis was for a different wave, but the result may be the same. I am looking for a move higher from here. I hope my post today will clarify things. Longer term, I am still looking for the SPX above 1957 to complete a sequence from 1074.77. Things have been pretty choppy lately, so that is fluid. There are several different ways this could complete.
Thanks,
Steve