Monday, 14 June 2010

23:59 BST - SPX Update - Option 2

Here's an update on one of the more bullish counts. This is Option 2 which shows a complete wave [i] down fron 1219.80 to 1040.78 and a correction in wave [ii] now going on. I would place us in wave (c) of [ii]:

60 min chart - Option :

As we're in a (c) wave, we need to see 5 waves up from 1042.17. On the count shown above, we have completed i of (c) at today's high and are now in ii of (c) which may be forming a zig zag or double zig zag. Here it is on a 3 min chart from the wave (b) low:

4 min chart - Option 2:

Its a bit ugly, but no uglier than any other impulse count off the 1042.17 low that I can dream up and less ugly also than several sets of ones and twos! 

But I like the channel that it forms and, if we are in ii of (c) now, I like how wave [B] of ii retested the broken channel and dropped away.

*NOTE* This count of 5 waves up from the 1042.17 low may also apply to the more bullish count, Option 5, which has us in minor A up from an (X) wave low. I also like it for the more bearish counts if I label them as a-b-c instead of w-x-y (eg the count in Option 1. Today's high would then be the end of c of (ii), quite possibly completing that correction).