Tuesday, 31 August 2010

17:11 BST - SPX Update: 1 min: bearish count - wave (2) of [5] high perhaps?

If we're in wave (2) of [5] (the 1st possibility listed in my last post), its retraced just about 61.8% of the decline from 1065.21 to today's low:

SPX 1 min from the 1081.58 high:

Its also at resistance (referring to the main labelling on the chart above) from the wave 3 of (1) low and the wave b of 5 high (not labelled). With the risk that what I've labelled as wave Y of (2) has more to go to the upside, you'd want to be out above today's high. Taking out 1049.22 would help this count, but today's high would still be a good place to get out if it moves back up there, given the more bullish possibilities that remain. Of course, for this count, 1065.21 is the invalidation point.