Friday, 18 June 2010

16:11 BST - SPX Update

With the new highs above 1118.74, focus now switches to the two moderately to very bullish counts shown in last night's update. So, for all of the Options 1 to 5, the 1118.74 high was a 3rd wave. Yesterday was a 4th wave.

Here is how the two counts from last night look currently (showing the picture from the high at 1118.74):

The more bearish count:

2 min chart:

It might look odd, but the wave I have as [3] is about 1.618 x wave [1]. To think this is working out, I'd like to see the low marked iv taken out - that's 1105.87.  

Of course, this count could actually be very bullish also, putting us in what could be  an extending 3rd wave. Taking out today's low at 1113.93 would invalidate that possibility but the risk of an extending 3rd wave wouldn't really be excluded altogether until we take out the low marked [2].

The more bullish count:

1 min chart:

Probably a lot more upside left on this count and it fits well with the two most bullish Options, 2 and 5.