Thursday, 30 September 2010

17:08 BST - SPX update on the ending diagonal

This is the chart from earlier, updated with the subsequent price action:

SPX 1 min - ending diagonal complete at 1157.16?

Taking out 1141.02 has confirmed that a diagonal with the alternate labelling as shown on the chart in the previous post is complete at today's high.

However, if its the diagonal shown above (this was the main labelling on the chart in the previous post) that is playing out, we have to take out the low at 1132.09 to preclude further upside in wave v.

I've tentatively labelled an impulse wave down from today's high, but wave (1) looks more like a double zig zag - I've labelled a running flat wave 2 within wave (1) to make it an impulse, so its not entirely satisfactory.

What I want to see now is the low at 1132.09 get taken out. If we take that out, the diagonal shown in the above chart would, I think, have to be complete since wave v, which could still be in progress otherwise, would no longer be a zig zag type wave if that low is taken out.

Until 1132.09 goes, the above diagonal carries the risk of further upside (to a maximum of 1159.22).