On Friday the SPX opened slightly
higher, rising to 1952.89 by mid-afternoon before dropping back to 1921.50. I
labeled 1952.89 as Wave D of (C) and 1921.50 as Wave E to
complete Wave (C). In order to be able to reach my 1748 target
level, I stated that Wave (D) would now have to
complete below 1990. The SPX rallied into then rallied into Friday’s close
moving up to 1935.32. Although this rally was admittedly anemic, it would
appear that after today’s action this was indeed all of Wave (D). If this
is the case, it would lower my target from below 1748 to below 1721.
The SPX started of lower today and
continued lower throughout the day with barely a break. The index first dropped
to 1902.85 before bouncing slightly to 1911.00. The next move carried the SPX all
the way down to 1880.38. This would appear to be the end of the first wave of
the decline. At that point the SPX
bounced to 1890.60, fell further to 1879.21, and then bounced again to 1888.90.
This action can be interpreted as the a-b-c waves of an uncompleted inverted
corrective wave. From here the SPX should undergo another move lower, followed
by another bounce of about 10 points, similar to the 10 point bounce of the a
and c waves mentioned above. That would complete the second wave of the decline
with the third fourth and fifth waves to follow.
No comments:
Post a Comment