The SPX gapped lower at the open,
falling to 1939.75. This was within the 1935-1944 level I mentioned yesterday
as possible support. The support was short-live however, as the index soon
worked lower. The SPX soon fell to 1932.20, and then to 1929.22. By dropping
below the 1935-1944 support, a further drop is indicated.
At 1929.22 the SPX completed a 5
wave sequence from yesterday afternoon’s 1971.66 high, labeled as Wave (c). From
that low the index rose to 1945.82. This looks to complete an inverted
corrective wave from 1955.88, meaning the SPX should come under further
pressure. At this point the index would now need to complete the sequence from
1979.64. After this completes the SPX should rally before undergoing a further
drop to complete either a sequence from2020.86, or Wave E from 2079.46 on the Daily Chart.
Once this all completes the SPX
should stage one more rally before starting the final leg down to below 1748.
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