Tuesday, 3 August 2010

15:410 BST - SPX Update

For an immediately bearish count, this complete triple zig zag looks OK, with what looks like 5 waves down from yesterday's high. Obviously, its wrong if we take out that high (the same applies to the double zig zag count shown on the chart of Option 1 in last night's update):

SPX 1 min - triple zig zag:

The risk remains that there is still further upside to come as you can see from this chart:

SPX 1 min - single zig zag:

The 5 waves down from yesterday's high could just be the c wave of an expanded flat wave (iv). As I said in last night's update, we really want to see 1088.01 get taken out if the single zig zag is complete.