S&P is moving as expected during the last week. After having broken the inverted H&S is now moving towards the 1360-70 target mentioned in previous posts. The move in S&P from the June lows is most probably a wave 2 after the 5 down (1422-1370). The wave structure from June lows to now is in 3 waves. Wave 2 target from the inverted H&S coincides with the 61,8% retracement near 1362. Assuming that this is a corrective upward move, then it will probably be over in this or next week. We mentioned before that time was needed for this correction to unfold, at least until the end of the month.
Taking a closer look in the intraday chart we certainly see that wave C (or 3 for the bulls) is not finished yet. We clearly see 3 waves up and the 3rd is not finished yet. More upside is very possible towards 1360-70. Now if the index moves below 1305 any possibility for an impuslive move from 1270 will be zero. Bears want the index to move below 1305 after wave C is finished. Bulls want to complete this 3rd wave and then to be followed be a 4th and a 5th (to new highs favourably). So in the short term, prices are biased towards 1370. As long as no impulsive move from 1270 is completed, the intermediate and longer term trend will change to down. 1422 area is very important not to be broken if this market is to turn down soon. On the other hand 1270 should hold even if 5 waves up are completed.
Thank you for taking the time to read my post.
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