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.
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