Thursday, 26 August 2010

14:51 BST - SPX Update: 1 min close up: possible top on main bearish count

On the main bearish count, this could count quite nicely as a top if it holds - (Y) is 1.618 x (W). If we take out today's high the ending diagonal can be re-drawn and remain valid, depening on how high it goes, if I keep the A and B of (Y) labels at 1056.40 and 1052.59, which is where I had them in yesterday's end of day update. So, its not a write-off if we do take out today's high, but the risk then is that  we go on to invalidate this count (at 1063.93) which could mean more upside, so tight stops required on any short trade here:

SPX 1 min close up: