Friday, 1 October 2010

15:39 BST - SPX Update on the bearish count

On the bearish count of an ending diagonal complete at yesterday's high, I think we may have seen a double zig zag from yesterday's low, with a truncation in the C wave of the second zig zag:

SPX 1 min [1]-[2] down from 1157.16:

So, the end of wave [2] is at 1149.59 which means that we shouldn't now get back above that high if this is the correct count. I'd start to feel more confident in this if we take out 1136.08 and do it swiftly with a clear impulse down. If we take out that high, then this count will need to be reassessed.