Wednesday, February 1, 2012

2/1/12 - EOD Update

SPX - 5 Min

The bulls hung onto most of the gains today and put in what I believe to be a third wave. The key question now is what third wave does this represent?

I believe a double zigzag completed into the close as a wxy. I have a potential bearish setup but until 1321.41 breaks, the double zigzag is the primary count down off today's high.

The more bullish option is a nested 1-2 i-ii up.

The 30 min chart again highlights the three best options I'm tracking right now. Notice if this is a flat in progress, wave B has now met the minimum 90% retracement target of wave A. If this is playing out, wave C is free to drop down towards the wave A low and even further if it wants to expand.

If the red option is to remain alive, 1321.41 is the key level the bulls need to hold to avoid a 4-1 overlap.

SPX - 30 Min 
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