4/14/10 - SPX EOD

SPX TRENDLINE

SPX PREFERRED COUNT- 60 MIN

SPY ED OPTION

SPX ROAD TO 1228

This is probably the last post I'll be making until next Monday as I will be on vacation. That being said, It is good to be long with the trend. Scalping these pull backs have been very profitable the past couple weeks. 

The trend remains up but it appears we may be reaching a point of resistance as the top chart highlights. If using the Ending Diagonal option (SPY Chart), this would corroborate this thesis. But until I see 5 impulse waves down with the associated moving average cross-overs (down), the trend will remain up.

My preferred count (60 Minute Chart) shows us working on minuette (iii) of minute [v]. 1215-1220 looks like a good potential target as it represents many things. One being minuette (iii) = 1.618*(i) at approximately 1215.  Refer to the chart for other Fib relationships and target level justifications. 

One thing to note, the SPY ED option is coming to a head as it is only .28 cents away from voiding itself. 121.45 would be the maximum length minuette (v) can be in order to use this count. So for now, this option is still on the table. If SPY takes out this number, we can say bye-bye to this count.

The last chart is one that I have posted for a few weeks now. It is pretty clear the market is trying to hit that inverted head and shoulders target. Price is coming up on that upper ascending trendline so this may be a fitting place for Minor A to end with a Minor B pullback. 

Notice the bearish wedge pattern? However, it still looks like it has some more room to wiggle up before coming to a head. Just one other way to look at this move higher. We'll see...