Thursday, 24 June 2010

14:13 BST - ES Update

This bearish count just lines up ES with the count for SPX I showed on the chart for Option 4 last night:

SPX 5 min chart:

I've shown the alternative bullish count too (which is on the chart of Options 2 and 5 for SPX).

Its possible that we had a slightly truncated 5th wave within wave [5] on ES, making a complete wave i down now, in which case, this would align ES with the count I showed on the chart of Option 3 for SPX which would now put us in a wave ii rally. Even if we still have more to go to complete wave [5] or (C) of [Y], there does seem to be a probability that we will get a  rally at some point today. 

But bear in mind the count I showed for Option 1 on SPX, which would make a 5th wave low now only the end of wave [3] down, so a rally today would only be wave [4].

So I think we may need to be on the look out for a rally at some point today - perhaps the choppier and more sideways it is, the more likely it is to be  only a 4th wave and not a 2nd wave rally.