Friday, 6 August 2010

16:29 BST - SPX Update - Possible diagonal for [c] in a single zig zzg

As well as the triple zig zag count that we need to be wary of if short, here is another one to consider.   If,  on the single zig zag count (see the chart of Option 3), wave [a] was actually at the 1099.46 high and wave [b] was at the 1056.88 low, we may be forming an ending diagonal for wave [c] and we would likely be in wave (iv) of the diagonal:

SPX 5 min - single zig zag with [c] as a diagonal:

Its just something to be aware of. 

Its invalidated if we drop below the blue dotted line.