Tuesday, 24 August 2010

15:30 BST - SPX Update: 1 min chart: bouncing from lower channel line support

Although the 60 min chart I just posted shows that we're in an area of very little real price support, here's a 1 min chart I've posted before showing the base channel I've had drawn in for several days - we're right at the lower line and price has bounced from there:

SPX 1 min from 1129.24 high:

If we're in wave [3] of iii as the count suggests, we certainly shouldn't get back to the top of the channel. If we do, then something else is obviously going on - perhaps only one of the near term bullish counts I mentioned earlier or the leading diagonal 1st wave down shown in my last post. I'd like to see a break down out of the channel and perhaps a backtest from below that is pushed straight back down if the bear case is in play.