Wednesday, October 29, 2014
Tuesday, October 28, 2014
Tuesday's Market 10/28/2014
The SPX opened higher, moving up to 1973.35. After
pulling back to 1969.02, the index resumed its climb. These first two moves
were consistent with the targets given yesterday. From that point the SPX
strayed slightly from my forecast, as the wave became more complex than expected.
Since Wave 2 of the wave from the 1951.37 low was a complex inverted corrective
wave, I expected Wave 4 to be a simple wave. It looks like it instead was also
an inverted corrective wave, which carried the index to 1983.68 before
completing at 1980.35. The final move higher today likely completed the
sequence from 1951.37.
Short term the SPX could experience a pullback at
the open tomorrow, with support at 1979, and then 1964. If 1979 provides
support, the upside target from there would be 2010. If the index falls back to
1964, 1996 would be my target.
Monday, October 27, 2014
Monday's Market 10/27/2014
The SPX has been rallying since it hit a low of
1820.66 on October 15th. The index made an initial move to 1869.00,
which I am counting as Wave 1 of a 5 wave sequence to the upside. From there the SPX pulled back to 1835.02.
This looks to be Wave A of an inverted corrective Wave 2. As is often the case,
Wave B of this inverted corrective wave has been the most powerful to this
point. This wave carried the SPX up to 1949.31. Another pullback to 1926.83
followed which I have labeled Wave C of 2. Wave D is currently underway, with a
target of 1975. After this wave completes, the SPX should pill back once more
to complete Wave E, and the inverted corrective Wave 2. This pullback should be
proportional to the first two pullbacks, with the first being 34 points, and
the second 22 points. This last pullback
should therefore be slightly less than 22 points, and I currently have a target
of 1956. After that the SPX should move higher to complete Waves 3, 4, and 5.
Shorter term, the SPX from the 1926.83 low
completed the first wave at 1961.95. Wave 2 completed this morning at 1951.37. I
am looking for Wave 3 to complete at 1970, Wave 4 at 1967, and Wave 5 at 1975.
If this plays out, the move lower to 1956 discussed above would follow.
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