Tuesday, 31 August 2010

19:09 BST - SPX Update: Bullish Counts Updated

Referring back to the bullish counts on Charts 1 to 3 in yesterday's end of day update, the first one just managed to survive today and the second two may have ended in slight truncations for their final [C] or (c) waves. Here's how they look at the moment:

Chart 1 - 60 min - single zig zag from 1010.91 still in progress:

And here's a close up of this count, picking up the above chart from the low at 1039.83 on 25 August:

SPX 1 min - from 1039.83 low: 

Even if we invalidate this count by taking out the 1039.70 low, the count shown in the charts below can be applied to this chart:

Chart 2: 60 min first bullish count under Option 4 - impulse up from 1010.91:

Chart 3: 60 min - second bullish count under Option 4 - leading diagonal up from 1010.91:

On these counts, the [C] or (c) wave would be the ending diagonal I labelled in my earlier post, giving a slight truncation, but it would be a valid count. If the diagonal was a leading diagonal and we go on to take out today's low and the 1039.70 low, that would be fine too, but we have to stay above 1010.91 in order not to invalidate the count.