Friday, 3 September 2010

17:40 BST - SPX Update: 1 min chart from today's high

You can see from my earlier post on the bearish count that the expectation is that there is another leg up to come to complete this wave ii rally. As mentioned, there is a possibility that we completed it at today's high as the alternate labels on the chart in that post suggest. Given the way we came down from today's high, it is tempting to label the end of wave ii at 1105.10 as shown in this chart:

SPX 1 min - from the high at 1105.10:

The move down does look impulsive, it has to be said. Furthermore, the action since the low at 1094.99 looks corrective. Its certainly worth considering. Taking out today's high would, obviously, invalidate this.