Wednesday, 15 September 2010

17:48 BST - SPX Update: Bearish count still valid

The bearish possibility remains valid with some label adjustments, provided we don't take out 1126.57:

SPX 1 min - bearish count:

Taking out the low at 1119.02 would be an indication that this count has a reasonable chance of playing out. At the moment we only have 3 waves up from today's low, but if its an impulse up it could be doing a series of ones and twos, so taking out that low would exclude that, as things currently stand.

Once again, though, the character of any decline is important - we need something clearly impulsive to the downside if there's any chance that we topped yesterday. Without that, the risk of further upside remains (see the alternative labelling on chart 3 in yesterday's end of day update for the possibility of another leg up to come).