Wednesday, 21 July 2010

15:03 BST - SPX Update

If we're in an impulse wave up from the 1056.88 low, then today's high could be the end of the 1st wave of that impulse - this is the count I have on the chart of Option 3. Here's the 1 min chart showing the move up from yesterday's low:

SPX 1 min chart - impulse wave:

To negate the impulse wave count, we need to take out 1056.88, Taking out the wave [3] high at 1078.24 would be a start since it would eliminate the possibility that this current pullback is a 4th wave within an extending wave [3]. But only taking out 1056.88 will end this count.

If we completed a double zig zag up from 1056.88 at today's high, (see Options 1,2,4 and 5) taking out the wave (B)  of [Y] low at 1074.25 will increase the odds that the rally from yesterday's low is over and that we should go on to take out yesterday's low. Here's a chart of the double zig zag:

SPX 1 min chart - double zig zag: