Volatility remained the story again
today, with the SPX undergoing three separate moves of 39 points or better. The
index opened higher, rising to 1972.35 before undergoing a 12 point pullback.
Another move higher took the SPX to 1980.69, which was followed by a 9 point
pullback. Then the index rose to the high of the day at 1989.60. At that point
the SPX moved sharply lower, giving up most of its 48 point opening move, and
it fell to 1948.33. The SPX quickly reversed again, this time moving back to
within 2 points of the previous high at 1987.76.
The market took a slightly
different tack than I had outlined yesterday. I had been looking at Wednesday’s
opening 1914.56 high as Wave (c) of a semi-inverted wave. That turned out to be
Wave 1 of (c), with Wave (c) actually completing at 1942.63. Wave (d) then
completed at 1935.05.The SPX then rose from that point to today’s high of
1989.60 in a 5 wave sequence. This would seem to complete Wave (e) and Wave C
in light blue.
It is important to note that the
rise from 1879.88 occurred as a single 5 wave sequence, and not two as I
thought it might. This is important in that some of the levels I mentioned
yesterday, most notably 1993, are not in play at the moment, but may become
important numbers again. In my count Wave E in light blue needs to complete
below 1993, but the current Wave C could extend above 1993 without any affect
to my current count.
At the moment it appears that Wave
C has completed at 1989.60 and if so the next move should be at minimum a test
of the 1879.88 low.
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