Thursday, 23 September 2010

19:59 BST - SPX Update on the bullish and bearish counts

On the bullish count I'm inclined to think that we completed wave (1) of [5] at today's high since the move down from there has become rather out of proportion to be wave 4 of (1). If we decline below 1127.66 (see the previous posts) now, that would exclude the wave 4 of (1) count anyway, but even if we don't, I think I prefer this count for the time being:

SPX 1 min - one more high to come:

Taking out today's low will invalidate this one.

On the bearish count, I'm going with this for the moment:
SPX 1 min - top in at 1148.59:

We have to take out today's low for this to be a possibility. If we're still actually in wave 2, we may well end up taking out today's high - that's fine. It will invalidate this labelling but as long as we don't get above 1144.38, the (1)-(2)-1-2 possibility will still remain.