Monday, August 10, 2009

SPX- Minor B Revisted

I posted this the other day:

I had Minor A in at 1008 with Minor B in the midst of developing an 'abc' correction. My label for Minute A may have been a little premature at the time. I had Minute B forming an expanded flat but that scenario is out the window. x

I have included that chart here with the resulting price action. Notice the price of what I anticipated as Minuette C of Minute B? The end result would have made Minuette C of B over 4.23 x Minuette A. This would be a "no no" in EWP.

However, in this latest chart, if Minute A is placed at 992, Minute B (which completed at 1018) is almost exactly 1.618 x Minute A. This relationship would be considered very reasonable within EWP.

Minute C is now in progress and what appears to be a wave 2 of C. A 3rd of a 3rd of C is anticipated as the next wave on tap and that could bring price down to somewhere in the 990 range for wave 3 of C.

Indicators are pointing to a continued move to the downside.

Let's see what happens!


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