Wednesday, 8 September 2010

15:03 BST - SPX Update: 1 min close up wave (2) correction or wave 5 of (5) up both still valid

The risk of further upside either in a continuing wave (2) or  in wave 5 of (5) of [C] (to a high above 1104.58) was highlighted yesterday.  Here's how I'm looking at today's rally:

SPX 1 min close up:

Both possibilities remain equally valid. The wave (2) count is invalidated above 1104.58 on this count. If that's taken out, then the wave 5 of (5) of [C] to complete wave ii on the bearish count will become the focus. If we don't take out 1104.58 then it'll look like we did top at 1104.58.