So far both corrective and impulsive primary counts are still good to go. I'm really liking the corrective primary count given the continued -ve divergence.
The 60 min MACD is close to triggering a buy signal with the 30 in a confirmed buy. However, until they can make a higher high, the divergence is there.
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| SPX - 5 Min |
This morning in the CiL and via Twitter, I was looking for a flat to form on the early morning sell off that would find support at the TL that connects the 12/21/11-1/5/12 lows. Sure enough it did as the 5 min chart above shows.
This wave structure fits with the primary options below. Wave (iv) for the corrective primary and wave 4 for the impulsive primary.
Both counts now are awaiting a push higher to complete their respective 5th waves. How those final five waves play out depend on which count is playing out.
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| SPX - Corrective Primary |
The final (v) here is looking for an a-b-c structure up, that is a three wave move to complete the ED.
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| SPX - Impulsive Primary |
This option is just looking for a five wave move or possibly and ED for 5.
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| 60 Min MACD TL |
I'm still watching the MACD TL that continues to show the -ve divergence. As mentioned above, a buy signal on the 60 min is pretty close. Lets see if the bulls can push for a cross up through the TL and make a higher high to start removing the divergence if that is what they intend to do.
Otherwise, 1300-1310 may be the limit to this push up since 10/3/11.
