5/23/12 - EOD Update

SPX - 5 Min

The market embarked on a wild roller coaster ride again, reversing a 15+ point sell off. Because 1292 was not breached today and the bear line was, there is still a good chance the bulls may rally this towards the 1346 target even if it is just to complete waves (C) or (Y).

Keep in mind  as the waves are playing out, we are starting to see what appears to be three wave structures.  **See the bull chart below as well for a larger three wave structure.

How that fits into the bigger picture, see below.

The 20 day SMA is at 1356.

60 Min Bear

 Perhaps a wave 4 triangle is in the works or a complex flat.

60 Min Bull

** Notice the structure for wave 3? That surely looks like a three wave affair. I am also hard pressed to get a good squiggle count out of that.

Because of this, we should not rule out the possibility that the correction from the 4/2 high is over. A break over the wave 1 low (1343.13) will indicate that it is more likely that it is complete.

But until 1343.13 is breached, we'll assume a wave 4 is in progress.