Thursday, 26 August 2010

15:55 BST - SPX Update: 1 min close up: Top for wave [4] on the main bearish count - take 2

Well, the ending diagonal was invalidated, but the main count is hanging in there. So, with some re-labelling, here's a count for a top on this one - again, watch the invalidation point (1063.91) since those slightly more bullish and very bullish counts I showed in yesterday's end of day update remain on the table and this count could get invalidated very quickly. I'm concentrating on this one for the moment because its the one that has to top very soon to stay in play and its a good risk reward at these levels:

SPX 1 min close up:

The wave labelled v in the diagonal may have another up leg to go,  but taking out 1055.38 would mean it should be over. If we can take out 1055.38 (the low of wave ii in the diagonal) that would strengthen this count. While that level holds, we're at risk of more upside, so waiting for that level to break, preferably with a 5 wave move down and a 3 wave retracement, would be a safer play and even safer if we take out 1052.59 in such a 5 wave move.