Friday, 30 July 2010

17:23 BST - SPX Update: Wave [c] of a zig zag

Here's an update of the chart I posted earlier for a potential continuing single zig zag from the 1 July low. I've adjusted the labels for the [b] wave from the earlier chart, to show it as potentially complete at today's low, but its possible its not and that the earlier labelling may be on the right lines. The labelling in this chart is invalidated below today's low, in which case, the earlier labelling may come into play:

SPX 1 min - wave [b] of minor 2 from 1120.05 high:

That wave ii label at 1098.10 may be wrong since the decline to that low looks like 5 waves, so wave ii may have more downside to go. It has to stay above the wave (ii) low at 1095.99 to remain valid, however.

If we take out that 1095.99 low then I'll probably look to the earlier labelling for this near term bullish count.