Wednesday, 13 October 2010

15:32 BST - SPX Update on the bullish and bearish counts

Here's the second chart from yesterday's end of day update:

SPX 1 min - ending diagional from August low:

Bottom line: if this labelling is correct, we have to take out 1155.71, though taking out that low labelled b at 1162.55, as mentioned yesterday, would help.

Here's the bullish count from the third chart in yesterday's end of day update:

SPX 1 min - impulse from August low:

If this is playing out, we have to stay above the wave (1) of [3] high at 1165.06 in wave (4).

So, essentially, while we're above 1165.06, I'd favour the upside. If we take that out now, I'd start to think a top for the rally from the August low may be in, but I'd want to see  1162.55 and then 1155.71 get taken out very quickly and impulsively.