Friday, 8 October 2010

16:22 BST - SPX Update on the bullish and bearish counts

Until we take out the high at 1163.87, the bear count stands, albeit with adjustments as price action develops. Here is how I'm counting it now:

SPX 1 min - bear count:

I've changed it from an (A)-(B)-(C) to a (W)-(X)-(Y). So, 1163.87 remains the level to watch to the upside. 

To the downside, if we take out today's low at 1155.58, the bullish count will start to look very dodgy, but it won't be ruled out until we drop below 1151.41. 
Here's the updated bullish count:

SPX 1 min - bullish count:

Wave [2] retraced 61.8% of wave [1]. I can count 5 waves up from the wave [2] low either complete or nearly complete, so I've labelled it as wave (1) of [3], but if its really bullish, it may just extend higher before its complete.

Again, we really need to stay above 1155.58, but the 1151.41 low is the critical one.