Monday, August 4, 2014

Monday's Market 08/04/2014

Excuse the short update today. I have been a little short on time lately. After last week’s big decline, the SPX started tentatively today. The index moved slightly higher, and then slightly lower before going into rally mode.

Looking at the 60 Minute Chart, I have labeled 1985.59 as the end of a 5 wave sequence that was Wave D of an inverted corrective wave. I had then labeled 1952.86 as Wave E of that wave. From that point the SPX has formed a complex wave, with 3 waves up, and 1 wave down completed thus far. It appears that the index is still in a corrective wave from the 1985.59 high, and did not complete the correction at 1952.86. The rally from the 1916.37 low looks to have completed a wave up followed by an inverted corrective wave that may have ended this afternoon.

At the moment I am expecting this rally to reach 1944-1957 before ending. At that point it looks like the SPX will move lower and test the 1916.37 low.


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