Wednesday, 8 September 2010

16:41 BST - SPX Update: 1 min close up

Its difficult to see today's rally as a straight impulse if we're in wave 5 of (5) of [C] to complete wave ii up. It could be a leading diagonal for the first leg up within wave 5, but it didn't make a very deep retracement for the second wave if it was a leading diagonal. Maybe its a developing impulse (these choppy looking waves do have a tendency to just keep going up and develop into impulses) but at the moment it probably looks best as a wave Y correction within wave (2) as shown on this chart:

SPX 1 min close up:

At least for the wave (2) count the invalidation point is close by at 1104.58 and, as I've said previously,  until we see impulsive downward movement, the risk of further upside remains - if we could get 5 waves down to about 1087, without a new high above 1104.58, this wave (2) count would look like a good bet.

To the upside, the next levels I'm looking at if we're in 5 of (5) of [C] up are at about 1107 and 1125.