Friday, 8 October 2010

15:16 BST - SPX Update: Possible count for 5 waves up from 1151.41

The action this morning could be an ending diagonal 5th wave in the move up from the low at 1151 41. Here it is on the chart of the near term bullish count (on the bearish count the 5 waves up from that low would be wave (C) of [2] in a new down move - see Chart 1 in yesterday's end of day update):

SPX 1 min - 5 waves up from 1151.41:

I can count the diagonal as complete at the high of 1161.09, but its equally possible that it still needs one more high. If we take out 1157.24, I'd look at it as complete. Also, reaching the dotted black line would suggest its complete.

Once we have 5 waves up from 1151.41, we need to stay above that level for the bullish count and we have to break below it for the bearish count. Nice and simple!