Tuesday, October 26, 2010

10/26/10 - 8:37 AM Update

8:37 AM Update
SPX - 60 Min

Ok. I wanted to see a confirmation to the hammer reversal at 7:30. So far it appears to be that way. Does it qualify as a bullish engulfing hammer?

I have to run for the next several hours. I hope to be back before the close.

If not, I'm still watching the 1171 and 1159 levels for further signs that a top may be in. Until they break, I'm leaning towards working higher in a wave [5] of the ED.


8:00 AM Update

SPX - 5 Min

Here's the 5 min update.
7:28 AM Update

I am feeling more confident about this count as long as those key support levels hold. Based on this count, wave [4] retraced [3] 50%.

The hourly is sporting a very large hammer. Just need to get confirmation now the next hour.

Notice that once again, the market has found a way to climb over that pink ascending trendline?

6:58 AM Update

I believe this may be the most relevant count at the moment.

6:43 AM Update

So far, if this is still wave (4) of the ED, it has retraced (3) 62% and wave y of (4) is 1.618*w of (4).

Pre Market

Pre market action suggest that a top may be in at the moment but we need further confirmation. I would like to see wave ii red at 1167.25 breakdown first and ultimately 1155.55 where I have wave 4 labeled.

The cash equivalent levels are 1171.71 and 1159.71. A bounce near 1180 would make wave iv of the ED retrace wave 3 62%
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