Wednesday, July 16, 2014

Tuesday's Market 07/15/2014

The SPX started the morning by moving higher, in line with my analysis from yesterday. It appears the index did complete the sequence from 1959.63 as I had expected, although it was short of the 1991 level I had mentioned. That target was derived using a secondary technique, which is sometimes less accurate, so the 1982.52 high was acceptable. The SPX began to move lower from that point, and moved down to 1968.91 with only minor bounces. This was within the range to complete the inverted corrective wave from 1969.84, and the source of my call for an 8+ point pullback; however it did not reach this point with a complete 5 wave sequence. Instead, the SPX continued to fall to 1965.34 before completing the sequence, which was beyond the range to complete the inverted corrective wave. After completing that sequence, the index completed a sequence to the upside, bouncing back to 1976.16 before fading into the close.


Since it appears that the SPX has completed a sequence from 1959.63, but failed to complete the inverted corrective wave, today’s 1982.52 cannot be Wave D from 1969.84 as I anticipated, but more likely only Wave 1 of D. This would indicate higher levels for the SPX can be expected. If the SPX falls below 1959.63 at this point it would likely mean that the decline from 1985.59 is not over.




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