On Monday, instead of continuing down from Friday's 2818.57 high, the index gapped up at the open, and then continued to move higher through the day, finally topping out at 2851.85. Friday's high of 2818.75 still looks to have completed a 5 wave sequence from the 2447.49 Wave 4 low. But it does look like that only completed a first wave from that low. Looking at the SPX from the 2818.57 high, the index first dropped to 2721.17 on Friday. The initial move higher on Monday took the index to 2843.83 with a subsequent move lower to 2807.89. Finally the SPX made another push higher to 2851.85. From the Wave 4 2447.49 low, the SPX thus has formed 5 waves, (2447.49, 2818.57), (2721.17, 2843.83), (2807.89, 2851.85), which has an R^2 value of 1. At times waves will form such a structure, or a structure that creates a trap.
So taking the waves from the 2191.86 low to the 2851.85 high, gives, (2191.86, 2300.73), (2360.25, 2641.39), (2447.49, 2851.85). This is still under the 2888 upper limit, and has an R^2 value of .9979.
This morning saw the SPX gap down, moving into oversold territory on the RSI(5), and then staged something of a recovery to hit overbought, without making a new high on the SPX. This suggests another move down. The level I am watching to the upside remains 2888.
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