The SPX closed above 1110 today. In my video over the weekend, I talked about this level being a significant level of resistance. We broke above it today, but however, we bumped into our next pivot point at 1115. 1115 will be just as significant as 1110. There is a lot of prior support/resistance in this area. 1115 is also the number that we closed on during New Years Eve. I expect the area of 1115-1120 to be the next area where we could potentially stall.
So now to the wave counts. It's really hard to count this recent up move since we broke over 1110. But here is a rough count.
Again, the wave (iv) looks really stretched. We'll have to see how it plays out.
When wave counts on the smaller time frame get distorted like they have now, sometimes I feel it's best to stick with a bigger time frame, such as the daily charts. They usually hide all the noise and give a more clear picture as to where we are.
The overall count looks still in tact, no overlapping, no rules being broken.
On the close up of that chart:
You can see that the down move from the highs was in a perfect downward channel. The recent upmove seems to be taking an expanding shape.
The Dollar was up with the markets today, which is strange. One of them is wrong. :)
Overall, the Dollar seems to be in an uptrend, but it is bumping up against some strong resistance. It will be key to watch the 80 level to the downside, and 81.35, 81.50 to the upside.
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