Monday, 8 November 2010

14:56 GMT - SPX Update

For the moment, the possibility of a top for the rally from the August low remains open since the high at 1227.08 has held so far and we took out the low at 1220.29:

SPX 1 min - bearish count:

The above chart assumes 1227.08 was the end of 5 waves up from the August low. It could, however, only have been the end of 3 waves up as shown on the bullish count:

SPX 1 min - bullish count:

This would put us now in wave (iv) with another high to come to complete 5 waves up.

As you can see on both the above charts, it also remains possible that we're still only in a 4th wave of lesser degree so another high would be due even on the bearish count. That remains a possibility until we take out the high at 1194.53, as mentioned in Friday's end of day update.

So, that's the main level I'm continuing to watch. While we're above it, the benefit of the doubt has to be given to the upside.