The SPX opened slightly lower,
falling to 1937.97 before rebounding to 1949.52. This likely completed a 5 wave
sequence from 1929.22 and not the 1945.82 I labeled yesterday. From there the
index fell back to 1932.57, before rallying back to 1945.37. Another small dip
to 1936.37 preceded a final rebound to 1941.97.
Assuming that 1949.52 completed the
second wave a sequence, the drop to 1932.57 and rebound to 1945.37 could be
seen as waves 3 and 4. Another drop below 1932.57 and above 1927 would complete
the fifth wave, and the sequence from 1979.64. As I stated yesterday, there
should then be a rally before another drop lower. If the SPX falls below 1927
then the index is likely still in the third wave from 1979.64.
My longer term view of the SPX
eventually dropping below 1748 remains unchanged. Once these shorter term waves
resolve themselves a more precise forecast should be possible.
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