Thursday, 29 July 2010

16:57 BST - SPX Update

The count for a complete double zig zag at 1020.95 still looks OK. We may well be in wave (3) down from that high. The alternative that we still needed to complete a wave (3) up within the [C] wave of the second zig zag has been invalidated because we took out the 1096.38 level mentioned in previous updates.

Here's how the double zig zag count looks now, from the 1020.95 high:

SPX 1 min - double zig zag completed:

I've put in a wave iii label at the lows, but it may still have more to go.

However, the count that has us in a single zig zag which still needs a 5th wave to complete remains intact until we take out the levels identified previously.

SPX 1 min - single zig zag in progress:

We could be near the end of wave [C] of y to complete wave (iv), so we need to watch any bounce to see how it behaves. Referring to the double zig zag count, if we bounce now and take out the wave i low 1107.41, that's going to invalidate the count on that chart, assuming we haven't yet seen wave iv of 3 of (3) and it will raise the odds that this single zig zag count is the one playing out.