Tuesday, February 7, 2012

2/7/12 - EOD Update

Looks like the market is still progressing higher. The sell off at the open capped a near perfect flat from which the market rallied higher in an impulsive fashion.

SPX - 30 Min
I'm still watching the 1355-1360 level. I'm still eyeing a few options on the 30 min chart above.

1. The red labels highlight a nine wave extension, which requires one more push up. The golden section target would be a nice place to stop.
2. The blue labels is looking at the completion of wave 5 blue.
     a. Either it targets 5=.618x1 at 1350 or wave 5 blue extends to 1360 where wave 5 = 1.
3. The green labels suggest an ending diagonal for this final wave.

Now once we figure out the end of this wave, where are we? See the two 60 min charts below.

The DOW Jones Industrials printed a new high above the 5/2/11 high. So will SPX follow? If so, 1370 would be something to keep an eye on.

SPX - 60 min - Primary 

SPX - 60 Min - Alternate

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