Monday, 23 August 2010

17:22BST - SPX Update: 1 min very close up with various potential counts and levels to watch

There are various ways to count the move down from today's high as you can see from this close up:

SPX 1 min very close up:

I've shown a very bearish possibility as the main count - we're currently in a sub-dividing wave (3) of [3] down. On the labelling shown, we're in  wave 2 of (3). That would be eliminated if we take out the high at 1076.67.

Alternatively, I may have the degrees wrong and we have yet to complete wave (1) of [3] down - we'd currently be in wave 4 of (1)  - taking out the wave 1 of (1) low at 1074.33 would eliminate this count.

Another alternative - the low at 1069.63 may be 5 waves down from today's high (with a slight truncation) for wave (1) or wave A of (B). If its wave (1) down, we can't take out today's high.

The more near-term bullish possibility is that today's high was only wave (A) of [2] and we completed wave (B), at today's low so we're now in wave (C), possibly to that 61.8% retracement level mentioned earlier.