Monday, 9 August 2010

16:32 BST - SPX Update

The counts showing a top to a corrective move up since the 1 July low  (see the Option 1 and 4 charts in the last post) are very close to being invalidated or rendered highly unlikely - taking out 1126.56 will do it.

It may be more likely that today's action is a 4th or b wave (see the charts of Options 2, 3 and 5 in the last post). 

We've had what looks like 5 waves down from today's high and a sideways to up move since. This could be a completed 4th or b wave, so we may just have started the next leg up, or we may still have a drop to come to complete either of those. If today's high can remain intact, it could be a (1)-(2) down.

Here's a possible count for today's action:

SPX 1 min - count from 1126.03:

So, for the moment, all counts are still on the table and we just have to wait and see and watch those levels previously indentified.