The SPX did not hit y target price of 1960-1985
today, and then dropped below 1929.35, the point at which I said would
invalidate my short term count. Given those facts, it is most likely that a 5
wave sequence from 1877.55 completed today at 1949.31 as 1877.55-1896.60-1891.55-1834.30-1929.3.5-1949.31.
This also may have completed a sequence from 1835.02 as
1835.02-1867.82-1852.17-1898.16-1877.55-1949.31. If so, the next thing I would
be looking at is an inverted corrective wave from the previous high, or
1869.00. The pullback from today’s high took the form 1935.24-1941.24-1926.83.
The five waves from 1969.00, 1835.02-1949.31-1935.24-1941.24-1926.83, falls
just shy of the requirements for a completed 5 wave sequence.
Yesterday I said that the SPX may undergo a
substantial pullback once it completes the current wave. That now does not
appear to be the case. If the SPX moves higher from this point, the sequence
from 1835.02 is extending, pointing to higher prices. If the SPX drops, it
would likely complete an inverted corrective wave from 1869.00, again pointing
to higher prices. This inverted wave would complete anywhere down to 1907. With
the index falling just short of the point needed to complete this wave, it seems
more likely that the wave from 1835.02 is extending.
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