Friday, October 2, 2009

SPX- 10/2 AM Update


Just wanted to post a simple daily chart to provide some perspective. The squiggles are definitely a little confusing.

The structure on this time frame is pretty clear. (Note: I changed the degree label back to minuette, which makes more sense). So far, there are 3 clear waves in progress since the 1080.15 high.

Notice the longest red candle? That's fairly indicative of a wave 3. Now, one may argue that this structure looks similar to two structures in August (just to left of current structure).

However, I think the open today will be ugly, due to the jobs report. Price should gap down and lead to some selling, which will further extend this wave 3. I think by the end of the day, price will probably break down below the 50 DMA.

So far the structure is looking like P2 may have topped out. We will see...

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