Monday, October 5, 2009

SPX 10/5 PM - Update 1-2s?

Are we still in minuette (iv)? On the 30 minute, I have a possible ED for wave c of minuette (iv) nearing completion. This count will be invalidated if price breaks above 1045.85, causing a 4-1 overlap.

However, I also see a potential 1-2 1-2 structure in the works. Once again, a daily view provides some perspective.

If this is the case, the 10 day SMA at 1050 may act as resistance to any further upside reversal to complete subminuette ii. 1050 would also make a nice 61.8% retracement from the 1069 high on 9/28.

Let's see what happens over the next few days. A break above 1045.85 rules out minuette (iv). A challenge of 1050 brings the 1-2s into play and a break above 1069 will imply that most likely P2 is not complete.


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