Thursday, 10 June 2010

22:20 SPX Update

If we are in wave ii of (iii) of [iii] down, we ought to see this correction stay within a correction channel. You can see from the 4 min chart below that there is a nice channel for the move up from 1042.17 and we're right at the upper channel line. Interestingly, as you can see, this channel is pretty much parallel to the correction channel formed during wave (ii).

We're also at a level of price resistance which happens to coincide with the 70.70% retracement level. Then there are those fib relationships I mentioned in the 21:22 BST post. So, good reasons to think that we may have come to the end of wave ii, if that is the correct count. 

If we break up out of it substantially then we're probably in one of the moderately or very bullish counts. Falling out of the bottom of the channel may signify the end of the correction.