Friday, 24 September 2010

17:32 BST - SPX Update - minor 2 complete with a slight truncation in wave v?

On this bullish count which yesterday was calling for another high above 1148.59, if we have completed 5 waves up from yesterday's low, the question now is whether its the whole of v of (v) or whether its just the first wave of v. If its all of it then SPX will have a slight truncation. The Dow took out its equivalent high, so this might be the kind of divergence that we often see at turning points:

SPX 1 min - minor 2 now complete with a slight truncation at 1147.62?:

Since the Dow exceeded its 21 September high, even if we don't take out 1148.59 to invalidate the [1]-[2] count, this count has to be the favoured one.

So far, we haven't seen any real sign of the market starting to decline here, so although I've labelled 5 waves up from yesterday's low as complete, there is clearly a risk that its not. We need a 5 wave decline as the first sign that a top may be in. Until then, we have to expect more upside.