Thursday, 2 September 2010

15:19 BST - SPX Update: 1 min possible wave [2] high?

It is possible to count 5 waves up from the 1076.20 low I've labelled as wave 4 of (C) at pretty much the 78.6% retracement level assuming we're in a i-ii-[1]-[2] down from the 1129.24 high:

SPX 1 min - i-ii-[1]-[2] close up from 27 August low:

However, be warned, we could be in an extending wave iii within 5 of (C). Taking out the high at 1081.30 (the high I've labelled wave iii but which would be the 1st wave in an extending wave iii) before making a new high would preclude this.  Or, if the wave 4 of (C) low should be at 1076.22 (I mentioned this in yesterday's end of day update) today's high looks like it would only be wave iii of 5. Again, taking out the high of 1081.30 would likely eliminate this. 

So, on this labelling, the high at 1081.30 looks like the level to keep an eye on. Until we take it out, the risk of further upside remains.