The SPX started slightly to the downside today,
dropping to 1882.30 at the open. The index then traded higher in choppy fashion
until it reached 1896.60. At that point the SPX pulled back to 1891.55 before
moving higher the rest of the day, topping out at 1905.03.
From Friday’s 1877.55 low the SPX completed a 5
wave sequence later that day at 1892.16. The drop this morning completed the
first 3 waves of an inverted corrective wave that later completed at 1890.06. A
quick move to 1895.97-1892.49-1896.60 then completed a larger degree sequence
from the 1877.55 low.
This looks to have completed the third wave of a
sequence from 1835.02. The pullback to 1891.55 looks to have been the fourth
wave of this sequence, and the rise to 1905.03 then completed the fifth. This completes
a sequence from the 1835.02 low. The SPX should decline from this point, with
support near 1878.
Looking at the sequence from the 1820.66 low, the
index completed the first wave at 1869.00, and has been forming an inverted
corrective wave 2 since then. Today completed Wave B of that wave. Again, the
SPX should now move lower, possibly to 1878. Whether that occurs as one wave or
three will determine whether the index will decline further, or resume the move
higher.
