Monday, 27 September 2010

15:31 BST - SPX Update: Possible end to 5 waves up from August - 1148.90 must hold

This is chart 2 from Friday's end of day update brought up to date with today's action so far. Its possible that 5 waves up from August ended with the ending diagonal shown on Friday:
SPX 1 min - 5 waves up complete?:

Here's a closer look from the wave iv of [5] low of 1122.79:
SPX 1 min - top of 5 waves from August at 1148.90?:

You can see its possible to count 5 waves down from Friday's high. However, its tentative. We now need to see any retracement stay below 1148.90 and form in only 3 waves. Otherwise, this labelling will be invalidated and what we probably saw will only have been the end of wave [3] of v as an ending diagonal.