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Yesterday’s analysis expected Thursday to begin with at least a little downwards movement before price turned higher. We did not see any downwards movement, the correction was already over, and we now have a new high which was what the main and daily wave counts have expected for this week.

Click on the charts below to enlarge.

S&P 500 daily 2013

This wave count agrees with MACD and has some nice Fibonacci ratios in price and Fibonacci relationships in time.

Minor wave 3 is 15.1 points longer than 2.618 the length of minor wave 1.

Ratios within minor wave 3 are: there is no Fibonacci ratio between minute waves iii and i, and minute wave v is 5.44 points longer than equality with minute wave iii.

At 1,740 intermediate wave (C) would reach equality with intermediate wave (A). At 1,739 minor wave 5 would reach 0.618 the length of minor wave 3. At 1,736 minute wave v would reach 0.618 the length of minute wave iii.

Within minor wave 5 no second wave correction may move beyond the start of the first wave. This wave count is invalidated with movement below 1,560.33.

Minor wave 1 lasted a Fibonacci 21 days, minor wave 2 lasted a Fibonacci 8 days, minor wave 3 has no Fibonacci duration at 98 days, and minor wave 4 lasted 22 days, just one day longer than a Fibonacci 21.

At this stage minor wave 5 has lasted 27 sessions. A further seven sessions would see it ending in a Fibonacci 34. At that time I will look to see if the structure could be considered complete. If it can we shall have an alternate wave count to consider the possibility again of a trend change at cycle degree.

Keep drawing the wider parallel channels from the monthly chart and copy them over to the daily chart.

S&P 500 hourly 2013

Movement above 1,684.94 invalidated the alternate hourly wave count from yesterday’s analysis and confirmed this main wave count. Upwards movement for Thursday’s session is likely to be minuette wave (iii).

At 1,721 minuette wave (iii) would reach 1.618 the length of minuette wave (i). So far on the five minute chart minuette wave (iii) cannot be seen as a complete five wave impulse and so further upwards movement should be expected.

While minuette wave (iii) is underway no second wave correction within it may move beyond the start of its first wave. This wave count is invalidated with movement below 1,684.94.

When minuette wave (iii) is a completed five wave impulse then the invalidation point should be moved up to the high of minuette wave (i) at 1,698.43.