Monday, 15 November 2010

15:18 GMT SPX Update

All of the counts shown on Chart 1 in Friday's end of day update, bullish and bearish, remain valid at the moment. Remember, there are four possibilities for the bearish count as shown by the main labelling and the red, green and blue notes on the chart:

SPX 1 min close up:

On the main labelling, wave 4 of (5) looks a bit out of proportion to wave 2. It may well be that the counts in the green or red notes should be preferred. On the green count,  today's high would still be wave 4 of (5), so the next low below Friday's low could be the end of wave (5) and [1]. On the red count, Friday's low would be wave (1) of [3] and today's high could be wave (2) of [3].

If we fail to take out Friday's low, the count in the blue note becomes more likely for the bearish case, and of course, the bullish case would also be looking quite good.