Friday, 13 August 2010

17:49 BST - SPX Update: 1 min chart

The count for the start of wave (5) down that I posted earlier is looking a bit unlikely at the moment without any impulsive follow through down. However, wave [5] may still be underway with this count:

SPX 1 min close up:

It shows a leading diagonal wave (1) and the rally from today's low is wave (2). The high at 1086.72 remains the invalidation point for this count.

You'll see on the chart a possible alternative where the leading diagonal is, in fact, an ending diagonal wave C within wave (B) of an on-going wave [4] correction. If that's correct, maybe we will get nearer to the 23.6% or 38.2% retracement levels at 1088 and 1095-ish.

At the moment, it doesn't look like the alternative that we had a wave [5] and i bottom yesterday (see note on the first chart in the post to which I linked above) is playing out since we haven't seen any action consistent with a 2nd wave retracement - yet. But there's still time, of course, so I wouldn't rule it out.