Tuesday's Market 09/23/2014

The SPX gapped down this morning to 1986.70. After bouncing to 1995.41 the index continued the decline, falling to 1983.80 before bouncing again. His time the SPX rose to 1988.59 before falling to the low of the day at 1982.86.

The SPX may have found at least a short term bottom at today’s low. From the 2019.26 high the index completed Wave A at 2006.59. Wave B then completed at 2014.08 and Wave C at 2001.75. Wave D was an inverted corrective wave, completing at 1995.99. Today’s action can be seen as Wave E which completed at 1982.86.

I am still looking at 2019.26 as the top from the 1074.77 low. If the SPX is to make a new high, it may do so from here. Resistance is at 1988, 1992, and then 2013. A move below today’s low would signal continued downside action.

Monday's Market 09/22/2014

The SPX started the day by gapping lower, which set the tone for the remainder of the day. After initially falling to 2001.75, the SPX bounced weakly to 2005.49, and then continued lower to 1992.11. Another slightly stronger bounce to 1996.79 followed, but was soon met with more selling pressure as the index fell to the low of the day at 1991.01. The SPX ended the day with a bounce to 1995.99, and then a fade into the close.

Looking at the SPX from the 2019.26 high the index first completed a 5 wave sequence at 2006.59 on Friday. The index followed that up with a completed sequence higher into Friday’s close at 2014.08. These likely are Waves A and B of a 5 wave sequence to the downside. Today’s opening move to 2001.75 and bounce to 2005.49 can be seen as a wave 1 and either wave 2, or A of 2. From 2005.49 a 5 wave sequence completed at 1991.01, for either wave 3 or B of 2. The bounce to 1995.99 is then either wave 4 or C of 2.

This continues to look like an incomplete sequence from the 2019.26 high. It appears that the SPX may move slightly higher from this point. A move to 1998-1999 would complete an inverted corrective wave from 2001.75. That should set up another move lower to the next support level at 1976.

Sunday 09/21/2014