Trend is down

Our prediction that yesterday's high at closing was an inflection point (end of b) towards further down movement proved accurate by today's drop in the $SPX below last Monday's April's 15 low (1,552). 

To this end, we believe that wave a ended at 1,552 last Monday and wave b ended at 1,575 yesterday (50% retracement of a).

We also advocate that we are in wave c at this time, a tradable wave that will subdivide into 5 smaller waves. To this end, we believe we experienced the end of wave 1 of c today at 1,543 (12:50pm), followed by wave 2 of c (currently underway), which has a target of 1,560 - 1,568 on the $SPX (if not completed today). After completion of wave 2, we will experience wave 3 down (targeting 1,500).

From a tactical point, we are awaiting confirmation that the present (upwards corrective) wave 2 is completed and wave 3 (of c) ensues downwards. 

Medium term target is 1,460 (range of 1,450 - 1,480) on the $SPX

A daily close above 1,576 invalidates the projections above.

DISCLAIMER: This blog shall not be perceived as investment advice. This is a personal diary of our thoughts on the markets. Consult a professional broker or adviser before investing.  Any opinions, news, research, analyses, prices, or other information contained on this blog are shared as personal thoughts and provided as general commentary only.