Monday, May 11, 2009

two possibilities

Although the SPX lost over 2% it's still possible that we'll see new highs this week before the correction should start.

Let's take a closer look to the two counts:

Bearish scenario (blue):

I labeled today's gap down as a wave (i) and the rest of the day as a wave (ii). Wave (iii) should follow tomorrow and break all these support lines.

Bullish scenario (orange):

We are still in wave 4 (flat). Wave 5 of (C) should start tomorrow and make new highs later this week.

(don't take the steep lines next Monday too seriously : D)


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