Monday, 15 November 2010

17:05 GMT SPX Update

The count that I had mentioned in the green note on the last chart has been invalidated and the count that was shown as the main labelling in that chart has become highly unlikely. So, this is what I'm left with for now:

SPX 1 min - close up:

The alternate bearish count shown in the red note will be invalidated above 1215.45.

For the main bearish count, I've labelled a double zig zag in progress but it could just as easily be labelled as a triple zig zag.

For the bullish count, the move up from Friday's low doesn't look obviously impulsive at the moment, so that suggests that we're in b of (iv) rather than Friday's low being all of (iv). However, it could yet develop into an impulse, so this is something to watch for.