Thursday, 28 October 2010

15:26 BST - SPX Update on the bullish count

Here's what I'm looking at on the bullish count:

SPX 1 min - bullish count:

If the wave (1) high at 1179.52 gets taken out on this current decline, then we'll have 3 waves up from the low labelled iv, which makes the triangle option look more likely for a continuing wave iv. We'd have to stay above 1171.70 to keep that option intact, assuming that's wave [C] of the triangle with today's high being wave [D].

If we take out that low and then also take out 1171.17, I'll be thinking wave iv is forming an expanded flat with a subdividing [C] wave as mentioned in yesterday's end of day update.