Thursday, September 25, 2014

Wednesday's Market 09/24/2014

After completing a 5 wave sequence from 2019.26 yesterday at 1982.86, the SPX looked poised for a move to the upside. The index did start off to the upside, moving to 1986.23 at the open. However, the SPX was not quite ready to break out. After opening higher, the index fell to 1980.68. The SPX then stair stepped lower, finally reaching 1978.63. From yesterday’s 1982.86 low the SPX formed an inverted corrective wave at 1986.23-1980.68-1983.80-1980.10-1983.10. Following that the index moved to 1979.06-1981.26-1978.63, completing a higher degree sequence from 2019.26 just above the 1976 target first mentioned on Sunday.


After reaching 1978.63 the SPX did rally sharply. The index ran up quickly to 1985.23, paused momentarily, and then continued higher to 1993.08, where another pullback took the index to 1989.90. The rally continued after that, reaching a high of 1999.79 just before the close, and completing a 5 wave sequence at that point.

With the completion of a 5 wave sequence at 1999.79, the SPX may experience a pullback from here. Support is at 1988, and then 1982. The next resistance level would be 2032. The SPX appears to be at another decision point; either move to new highs, or continue the decline.





No comments:

Post a Comment