After opening higher, the SPX reached 1978.90
before changing direction. The index quickly declined to 1962.42 before
rebounding to 1976.24.
Yesterday I mentioned that I was waiting for some
very short term waves to resolve themselves. Part of that began today with the
open into the 1978 area I had indicated might be important. This seems to have
completed a Wave D from 1979.95. This can be seen as the red A, B, C, and D on
the 5 Minute Chart. Wave E has a target of 1945-1955. This target calls into
question my count from the 1985.59 high, or Wave D in yellow on the 4 Hour
chart. Since this target indicates that the previous low from that high, 1952.86
may be taken out. If that occurs it seems likely that the corrective wave from
1985.59 has not yet completed. I would still expect this wave to remain above
1937.
If this plays out I will explain the implications
in more detail. For now, it looks like 1945-1955 is the next target. I would
then be looking for a bounce to 1969.
Chart of the Day:
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