Thursday, 30 September 2010

15:08 BST - SPX Update onthe ending diagonal

So, 1150 wasn't the top of the rally from the August low. However, on the ending diagonal count, one of the alternatives was that we were still in wave v (see yesterday's end of day update). If that's the case, we may have seen it complete today - its invalidation point was 1159.22:

SPX 1 min - ending diagonal close up:

If the alternate is playing out, with wave iv at 1141.02, then the invalidation point is at 1168.23. Needless to say (but I will), until we see a decisively impulsive decline, the risk remains to the upside as always. If we take out 1141.02 without making a new high, I might have more confidence in this labelling.