5/25/10 -SPX EOD

SPX - 60 MIN BULL PREFERRED

SPX - 60 MIN PREFERRED W/ MACD DIVERGENCE

SPX - 60 MIN BEAR

Where's the crash? It is nice sometimes to see wave counts play out the way one expects. 

Last night I posted a series of E-mini charts showing the large drop that followed through this AM on the cash markets. We got what we were looking for, at least for now. 

Many of us were looking for a final 5th down today. It appears as if we may not have seen one, but I think 5 may have truncated as an ending diagonal. I'll post a 5 minute chart later highlighting this.

Admittedly, my Fib projections were a tad off but the EW channels provided some guidance as where we should expect minuette (v). 

Based on my preferred count, Minor B is most likely complete and we should now work towards a final Minor C wave higher. We should be looking for 5 waves up. It may be a straight up impulse or an Ending Diagonal. Both consists of five waves. 

On the second chart notice the 60 min macd positive divergence. I had been pushing this in the CiL and posted this the other day. It turns out we had a double positive divergence. 

As for the bear, we also saw possibly the completing of minute [v] to end Minor 1. Now a sharp retrace for Minor 2 should be in progress. 

Maradona from the CiL pointed out in comments on yesterday's post that price touched a low equivalent to 5.7% below the 200 SMA, similar to the drop back in Aug 2007 (Thanks for correcting me again Maradona!). See this post on that. Mara, thanks for the heads up. I'll take a look at that chart again.

Check back later for more charts.