Friday, 6 August 2010

17:15 BST - SPX Update A possible breached trend line to watch

Drawing a correction channel based on a line connecting the July low with the x wave low in my double zig zag count shows a slight breach of the lower channel line today - not significant, but it now seems to be backtesting the line and, possibly failing:

SPX 10 min chart:

As I said, its not significant enough to mean anything yet and, of course, we still have important levels below that remain intact, so preventing the ruling out of the bullish counts. However, its worth keeping an eye on since, in theory, the breach of the correction channel should mark the end of the correction.