Friday, 10 September 2010

17:38 BST - SPX Update: Alternative to the complete ending diagonal

On the bullish counts (see the update on the bullish counts posted yesterday), although the move up from 1040.88 can be counted as a diagonal as I've shown on the bearish counts, it would be a leading diagonal.

However, there's an alternative which could also apply to the [C] wave on the bearish count, which has us currently in an ending diagonal 5th wave in the 5 wave move off 1040.88. Here it is shown on the count that has us in a zig zag up from 1010.91 (see chart 1 in the update referred to above):

SPX 1 min - ending diagonal 5th wave still in progress:

I've labelled it as if wave (3) is still in progress, but  it may not be. Either way, if we take out the low at 1101.53, this diagonal is ruled out.