Small Change Of Plans

Needless to say, the high we struck last week leaves a lot to be desired as a completed wave v, which I mentioned yesterday. But, we have to take what the market gives us, and I now have to view wave (iii) as complete with that less than a desirable structure, as well as coming up a bit short of the ideal 1.618 extension. But, this is now how I am forced to count it.

Yes, there are other interpretations as well, but I think this is the cleanest of the choices.

Another difference you will see with the 5-minute chart is that I had to adjust the wave (iv) support box a bit lower, as the wave (iii) came up shy of the ideal target. The support box represents the .236-.382 retracement of wave (iii), which is the typical expectation for a 4^th wave. The bottom of the box is the 7620SPX region.

This now means that as long as 7620SPX holds as support and we begin an impulsive move higher (wave i of (v)), that would be a strong indication the market is attempting to begin wave (v), with a minimum target of the 1.764 extension in the 7914SPX region.

However, if the market only bounces correctively, and, thereafter, we drop and break down below 7620SPX, and follow through below 7570SPX (and the .764 extension of waves (i)(ii)), that opens the trap door for the (c) wave lower.

Again, while not necessarily getting the cleanest of structures taking shape, the market is still providing to us some reasonable parameters to follow.