Monday, 20 September 2010

16:00 BST - SPX Update: Less bearish count

This count from chart 4 in Thursday's end of day update has more bullish potential than the ending diagonal shown in the previous post:

SPX 1 min - wave [5] of v up in progress:

And here's a close up:

If we're in wave (3) of [5], then the next pullback in wave (4) would need to stay above the wave (1) high at 1131.47. However, if wave (2) is actually the low at 1122.43 and 1128.12 is actually wave 1 of (3), then the next pullback would be 4 of (3) and would have to stay above 1128.12.

Obviously, those extensions listed for wave v on the first chart above may not limit it.