The markets traded within a narrow band again today, consolidating the gains from late last week, and awaiting some potentially market moving economic data due out later this week. SPY did mange an opening gap higher, reaching 506.74, but immediately reversed direction and headed lower. It fell to 505.53 before bouncing back to 506.58. This would define the trading range that lasted until just before noon. At that point SPY breached the lower end of the range, and drifted under 505 to 504.75 just after 1:00. That marked the low of the day as SPY then rallied through the afternoon up to 507.16, and closed at 506.93.
Today's action did not have a material affect on our count. As described yesterday, SPY is now in Wave 5 of Wave 5 from the October 2022 low.
SPY completed Wave 1 of this 5th wave this past Friday at 510.13. The RSI(5) did turn up from an oversold condition, and the MACD momentum appears poised to move higher. This could indicate we are nearing, or have reached the end of this corrective phase. However, there is the possibility that we could see another move lower, in A - B - C fashion, from the Wave 1 high. This would likely form the first three waves of an inverted corrective wave, with SPY then moving higher.
Our target remains the same for this final wave, with a minimum of 517, and with the shorter term count targeting above 537.
As readers of this blog know, I have been publishing my 537 target for some time. That would equate to ~ 5370 on the S&P. Glad to see Barklays concurs.
https://finance.yahoo.com/video/barclays-raises-p-500-target-212917531.html
No comments:
Post a Comment