Wednesday, 6 October 2010

17:25 BST - SPX Update: Still possible that we topped at 1162.76, but we still need price confirmation

For the count that has us having topped at yesterday's high, I'm now labelling a larger diagonal for wave (1) down, with a 78.6% retracement in wave (2):

SPX 1 min - top in at 1162.76?

I think the Dow took out its equivalent high so the risk that today's low on SPX was the end of wave [4] remains high at present (even though none of the other main indices I'm watching followed the Dow). 

If the count I'm showing is correct, we should now move quickly below today's low without any difficulty. That would certainly increase confidence in this labelling while a failure to do so would have the opposite effect. As before, the lower levels mentioned in my previous post then need to be taken out in an impulsive move, otherwise, I would have to expect more upside.