Thursday, January 21, 2010

Elliott Wave Update 21 January 2010

This is really exciting! The SPX managed to break below 1130 leaving the channel to the downside. The next important support is around 1090. I suspect that the first wave will end there or a little bit higher.

Yesterday's drop can be counted as wave 1 and today's as wave 3. Wave 3 is a bit short but we're at a support so the third wave may have ended. Tomorrow after some retracement in a wave 4, wave 5 should follow down to 1100 or so which would complete the first wave. The SPX mustn't rally above today's high for this count to stay valid.