In Monday's Update I said I was looking for SPY to move up to the 397-399 level, and then pull back by approximately 5 points. After closing at 393.67 on Monday, SPY gapped up this morning right into that 397-399 range, opening at 397.30. It reached a high of 398.34 just after 10:00am, before pulling back to 395.58 shortly before noon. Shortly after 1:30pm SPY was back up to 397.42. By 2:00 it had pulled back to 396.24, but then rallied strongly into the close, coming close to the 400 level at 399.41 before closing the day at 398.88.
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The initial move today to 398.34 met the requirements to complete Wave 5(Tan), and Wave D(Green). The following pullback to 395.58, while slightly less than the ~5 points I had mentioned, then met the requirements for Wave E(Green), and Wave 4(Green). Wave 5(Green), and the completion of the 5 wave sequence from the March 13th low, then projects to complete between today's late afternoon high, and 418. This would imply that the market is reaching a short term high.
While today's action met the requirements for the completion of the above waves, the short term wave structure counts better as a single wave from yesterday's Wave 4 low. This could mean that Wave 4 did not terminate yesterday afternoon, but is itself forming an inverted corrective wave that has yet to complete. This would point to higher prices still to come.
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