Thursday, 29 July 2010

19:14 BST - SPX Update

On the completed double zig zag count, I'm thinking we may have completed wave 1 of (3) down from today's high, or it may be wave (3) itself. If its wave (3), this retracement up would be wave (4) and must not end above the wave (1) low at 1109.78. For the moment, I've labelled today's decline as wave 1 of (3), but we'll see how it goes:

SPX 1 min - completed double zig zag:

On the single zig zag count, we may have bottomed in wave (iv) of [c] and, if so, we have started wave (v) up. It looks best as a i-ii-[1] count at the moment, but will be invalidated if we take out the wave ii low at 1093.75. And, of course, today's low can't be taken out if we have started wave (v) up. Remember, if we're still in wave (iv), it can't end below 1088.96:

SPX 1 min - wave [c] of a single zig zag: