Thursday, October 23, 2014

Thursday's Market 10/23/2014

The SPX moved higher from the opening bell today, rising to 1849.56. After a small pullback the index rose first to 1953.09, and then 1957.65. The first substantial pullback followed from that point, as the SPX fell to 1951.82. After that one more move higher occurred, taking the index to 1961.95. From that point the SPX began to pullback in earnest, falling to 1949.11 before bouncing back to 1955.15. One final move lower took the index down to 1948.12 shortly before the close.


As I discussed yesterday, the SPX completed a 5 wave sequence from the 1835.02 low yesterday at 1949.31. This looks to be the first wave of a larger degree sequence from that low. The first three waves of an inverted corrective Wave 2 occurred yesterday, with today’s rally completing the fourth wave.  The current decline looks to be the fifth wave.

Given this count the SPX should continue lower tomorrow, with a target of 1935-1933. After that I would look for a continuing of the advance from 1835.02, with a target of 1980.



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