With the NAZ reaching our minimum three day target of 2115 for an impulse wave kickoff today, wave iii of 3 of V has officially began. The SPX did fall short of our 1208 target, closing at 1199. However, since minute wave ii only ended on friday in this index and the DOW, we have to give the SPX two more days to reach 1208. Personally, I feel the SPX and the DOW started their impulse waves today: laggards, as I stated over the weekend.
It appeared obvious this morning, from the onset of the second gap up in a row for the NAZ, that the selling pressure had subsided, and one just had to wait for the buyers to enter the market. At 12:30 the NAZ pushed over 2100 for the first time in nearly three weeks, and never dropped below it again. Tomorrow’s test will be to see how the SPX handles 1200. It has not been there in nearly three weeks as well. Added an hourly NAZ chart from the lows. Buying the dips!