Wednesday, 18 August 2010

16:45 BST - SPX Update; 1 min close up

If we're in the bearish count, we're either still trying to complete wave (1) down from the 1100.14 high, or we have completed it and we're currently in wave (2). Given the width of the retracement up from today's low compared to what I've labelled wave 2 of (1), I think I prefer the latter even though the 5th wave would be very elongated (it was the count I showed last night and this morning, but I've labelled the former on the following chart):

SPX 1 min close up:

If its wave 4 of (1), we need to stay below the wave 1 low at 1097.51. If its wave (2), we can't take out the 1100.14 high (if its wave (2), there may be further upside to come since its only about a 38.2% retrace (50% would be at about 1093).