Thursday, 22 July 2010

16:55 BST - SPX Update

On the counts I'm following, the 1065.25 level seems to be of potential importance. Here are the charts to show why:

SPX - double zig zag from 1 July:

Taking out 1065.25 on this count may just mean that wave [B] is continuing, but it may start to make the count look unlikely.

SPX -  impulse from 1 July:

Taking out 1065.25 on this count would mean we are not in wave [1] of iii. Provided we don't take out 1056.88, it could be that wave ii is continuing, but I don't think it would look good since today's rally would have to be a [B] wave within ii but it looks like 5 waves, not 3. So, taking out that level may mean this count is unlikely to be in play, even though its only invalidated below 1056.88

SPX - wave [C] of second zig zag:

Taking out 1065.25 on this count would suggest the second zig zag is over, unless wave [B] is continuing - that might seem unlikely for the reasons referred to above in respect of the first chart. However, it wouldn't rule out a continuing wave x, so we'd still have to be on the look out for another zig zag until the 1 July low is taken out.

SPX -  complete zig zag from 1056.88:

Taking out 1065.25 on this count is likely to signify the end of the move up from 1056.88, even though it wouldn't be conclusive until we take out 1056.88.