The SPX started the day by gapping lower, which
set the tone for the remainder of the day. After initially falling to 2001.75,
the SPX bounced weakly to 2005.49, and then continued lower to 1992.11. Another
slightly stronger bounce to 1996.79 followed, but was soon met with more
selling pressure as the index fell to the low of the day at 1991.01. The SPX
ended the day with a bounce to 1995.99, and then a fade into the close.
Looking at the SPX from the 2019.26 high the index
first completed a 5 wave sequence at 2006.59 on Friday. The index followed that
up with a completed sequence higher into Friday’s close at 2014.08. These
likely are Waves A and B of a 5 wave sequence to the downside. Today’s opening move
to 2001.75 and bounce to 2005.49 can be seen as a wave 1 and either wave 2, or
A of 2. From 2005.49 a 5 wave sequence completed at 1991.01, for either wave 3
or B of 2. The bounce to 1995.99 is then either wave 4 or C of 2.
This continues to look like an incomplete sequence
from the 2019.26 high. It appears that the SPX may move slightly higher from
this point. A move to 1998-1999 would complete an inverted corrective wave from
2001.75. That should set up another move lower to the next support level at
1976.
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