Tuesday, 15 June 2010

22:23 BST - SPX Update Option 3

Option 3 has us still in wave [iv] of a leading diagonal down from 1219.80.

This afternoon I said I thought it possible we were still completing (y) of [iv], although it could count complete as things then stood. Well, obviously, it wasn't complete. This is how it looks now:

5 min chart - Option 3:

Although there is plenty of room left to the upside before the lines of the diagonal would no longer converge, if we have a double zig zag for (y) either complete or nearly complete, that ought to be it since triple zig zags are said to be rare.

The other indices that would align with SPX in an on going leading diagonal (see post dated 12 June 2010) are also still valid leading diagonals, although on some there is less room for further upside before the lines become parallel.