Wednesday, 6 October 2010

19:18 BST - SPX Update: The likelihood of a top at 1162.76 may be increasing

This is what I have at the moment - the bearish count could be on track, but I still want to see the levels mentioned previously (and explained in yesterday's end of day update) taken out (until then I remain wary of further potential upside):

SPX 1 min - top at 1162.76?

Since we stayed below the wave (1) low at 1158.13 on the move up from today's low (so far, at least), the leg down that I've labelled as 1 of (3) could be the whole of (3). If we take out the low at 1154.85 without first taking out 1158.13, I might go with that alternate labelling, but I'll have to see how we retrace if we do get a low below 1154.85 now.

If we take out the low at 1158.13 before making a new low, then the (1)-(2)-1-2 comes into play and the invalidation point will be the wave (2) high at 1161.75.