Wednesday, 11 August 2010

16:42 BST - SPX Update

Here's an update of the 1 min chart posted earlier:

SPX 1 min:

I'm showing a completed wave (1) of [3] down, but this could be wave [3] itself - its done enough to count as wave [3] and has left enough room for a wave [4] correction which doesn't have too much risk of overlapping wave [1].  

I'm not sure yet which to favour but if we take out 1111.58 (wave [1] low) today's low can't have been wave [3] and its more likely its wave (1) of [3] as suggested by the main labelling.

Obviously, there's a possibility that we still haven't bottomed, but it can be counted as a complete 5 waves down from 1126.16, so that's what I've gone with for the moment.

If we haven't yet bottomed, the drop from 1126.16 would be a 2.618 extension of the drop from 1129.24 to 1111.58 at about 1081. If we drop that low without a retracement first, I'd be more inclined to count the drop from 1126.16 as wave [3].