Tuesay Market Action

The SP500 index was up today, but not a lot.  It mostly meandered throughout the day, breaking out of the low side of a two-day trading channel.  The action for a couple of weeks now has been within boundaries defined by the 8/05 high of 1218.11, and the 8/09 low of 1101.54.  Today's high sneaked fractionally higher between 3:36 and 3:51, topping at 1220.10 before sliding back to close at 1212.92.

In the most recent several days, we've seen a jump up followed by leveling - which looks rather familiar.  

FWIW, I've suggested support/resistance bands in the area of roughly 1200 to 1210-ish a few times already, and just for kicks drew a curve along or near the peaks (blue.).  Elliott wavers who actually know what they're talking about are calling the counter-current move from the 8/09 low a double zig-zag. (Figure 12 at the link.  You'll need to mentally invert the picture - it is illustrating a downward correction, while the current one is upward.)  This move should be getting close to completion, possibly near the 50% retracement I mentioned yesterday - unless it turns into a triple zig-zag, which is also possible.

Momentum peaked early yesterday morning and has been slumping since.  Could today's high have been a top?  Tune in tomorrow for more exciting action.
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