Thursday, 11 November 2010

18:04 GMT - SPX Update

All this sideways movement today isn't suggesting that we've bottomed in wave [4] of the alternate (bullish) labelling. Its suggesting that the labelling I showed in the last post has better odds of being on the right track, at least for now, albeit with a more extended wave 2 of (5) (on the bear case) or B (on the bullish case):

SPX 1 min - close up:

The other alternative, that we bottomed in wave (5) and [1] on the bear count, with a truncation in wave (5) is also still valid and the sideways action would certainly be consistent with a wave [2] correction. I'd assume, however, that if this is what's playing out, we have more upside to come in wave [2] since we've only achieved a 23.6% retracement if we bottomed in wave [1] at 1206.40.