Wednesday, 10 November 2010

17:33 GMT - SPX Update

I'm starting to think that the bear count on the following chart should be labelled as follows:

SPX 1 min - close up:

This puts us in wave (4) down from the high at 1127.08. Its possible that we may just have completed wave (4) at 1214.02, approximately a 38.2% retracement of wave (3). However, it wouldn't be surprising to see it play out for longer (especially given what wave (2) did) and hit the upper blue channel line.

If there is more upside in wave (4), then it has to stay below 1220.40, the wave (1) low.