Wednesday, December 9, 2009

12/9 - SPX : A Bullish Option

Here's an update of this chart I have posted for the past few days. One could argue that wave (e) is done or near completion. More likely near completion because wave (e) would have to extend beyond (c) and it hasn't done it yet.

What is interesting to point out here is that the Bollinger Bands are tightening up. Today's low was 1085.89, just 6/100th of a point shy of the lower Bollinger Band. Did we find buyers at this end and will that bring upon a thrust higher?

Price also respected the purple trendline, which has guided price with each daily MACD crossing.

Having said all this, my primary count is still the one from the previous post. The Daily MACD is making it's way towards the centerline and price closed under its 20 day ma.

I think we should have an answer before this week is over whether there is one last push higher or the trend has definitely changed to the downside.


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