Wednesday, 13 October 2010

19:32 BST - SPX Update

The market keeps grinding higher, as you'd expect when no significant level to the downside is taken out. Here's what I'm seeing at the moment. first for the bearish count:

SPX 1 min - ending diagonal from August low:

I've labelled it as complete, but there's no price action yet to support this. I'd like to see 5 clear waves down to start with and then a drop below that wave (4) low at 1173.14

Here's the bullish count:

SPX 1 min - impulse up from August low:

Here, if the labels are correct, we have to stay above 1168.68 in wave [4]. If we drop below that, I'll start to prefer the ending diagonal count above.