Wednesday, January 6, 2010

1/6 - SPX : (v) of [v] Ending Diagonal

Ok. I updated the labels just a tad bit.

We are very close to a top here. If the labels are correct, this could be the top. Who knows, but whatever degree this is, it sure looks like the run up is coming to an end.

If this is a legitimate Ending Diagonal and if red (iv) is complete, (v) therefore cannot be greater than (iii), which then caps (v) at 1144.

Interestingly enough 1144 is the level where minute [v] would equal minute [i].

The way I see this playing out (see bottom chart) I am expecting a final a-b-c wave up for minuette (v), which ends in a throw-over. Tomorrow, subwaves 'a' and 'b' play out, which sets up wave 'c' for the employment report on Friday. On Friday a burst higher towards 1144 occurs and then the market sells the news.

And of course it is possible that it completed today if you replace (ii) with (v). Keep an eye on that lower ascending trendline.

We'll see!! GL!


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