As The Market Meanders

When I was a young child, I remember my grandmother watching a soap opera called “As The World Turns.”    Well, we seem to be stuck in another similar type of soap opera in the market, which I am now entitling “As The Market Meanders.”

We have been stuck moving back and forth in this region now for over 3 months.  And, while we are still very stretched to the upside, the market has yet to provide us any evidence that a top of any larger degree has indeed been struck.  The 6550SPX support region has held on many tests.  

But, now we are meandering in a smaller range.  And, the market is now seemingly playing the same game with the 6810SPX level.  And, as long as we remain over that support, there is a reasonable interpretation that would suggest we can rally to the upper box on the 5-minute SPX chart to complete a (c) wave, and potentially finally top out in a 5^th wave of a larger c-wave off the April low.

However, if the market breaks that support, then we have to analyze the structure of that break-down to determine if it is impulsive (the yellow c-wave decline), or corrective (the (b) wave pullback) – which will then set up the (c) wave rally to the target overhead.  

So, with all that being said, you can see that not much has really changed from the weekend update.