Prices gaped higher today then remained in a low to mid 1020s for the remainder of the day. Prices closed near the highs of the day, about a 10 point gain on the S&P 500.
The sideways action today looks like consolidation for another move higher. The higher the market goes, the less likely this has been an upward correction. Over 61.8% of the leg down since the 1039.47 peak has now been retraced. This is a hefty retracement, even for a second wave, especially if prices are poised to move higher again.
On an intermediate term basis, the path of least resistance is not clear given the wave structure. Bullish and bearish counts are shown, and there are arguments for both on a variety of scales. In any case, the market appears ready for another jump higher, then a pullback taking hours or days. Beyond that, time will tell.
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