After seemingly searching for
direction yesterday, the SPX settled on moving higher today. From yesterday
afternoon’s 1948.36 low, the index completed a 5 wave sequence higher to today’s
1983.19 high. Waves 1, 2, and 3 completed yesterday, along with Wave a of an
inverted corrective Wave 4. This completed at 1967.01, and was followed by the
surge to 1983.19 for Wave 5.
Along with my count from yesterday,
this presents an interesting scenario. If you remember I moved my label for
Wave [d] and Wave (D). These waves, along with the first several
waves I described yesterday actually form a complete 5 wave sequence as 1938.37-1911.21-1988.63-1967.72-1965.29-1939.19,
meaning Wave [d] completed at that point, and
the SPX has yet to complete Wave (D). So the
index could move lower at the outset tomorrow, and then rally into Thursday.
The target for this scenario would be 2002, slightly above the 2001 level I
mentioned yesterday.
Even if the SPX breaches that 2001
level, there are still counts that would get it down to 1748, which remains my
target. It should be an interesting couple of days.
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