Wednesday, 6 October 2010

20:15 BST - SPX Update on the possible (1)-(2)-1-2 developing from the high

The (1)-(2)-1-2 won out, so now wave 2 of (3) must stay below 1161.75. It counts well at the moment as a double zig zag. 

However, since we've still only got 3 waves down from the high at 1162.76, I'm still wary that today's low may only have been the end of wave [4] (until we take out the levels I've mentioned previously). As you can see, I've sketched in a potential diagonal up from today's low which could be the start of the next leg up if today's low was wave [4] - we must take out today's low to eliminate this:

SPX 1 min - top at 1162.76?