Thursday, June 24, 2010

S&P 500 ~ Elliott Wave Count 25 June 2010

Already the pre-market action indicated that we would see a new low today. When the unemployment claims beat the estimates the market started to rally though. But this lasted only for a few minutes until people realized that the numbers were actually just less worse than expected...

So, the SPX continued to decline and hit 1075 in the morning where it seemed to bottom out. A very nice impulse from 1131 was formed so I thought this could be a completed wave (i).

Just a few hours later the market proved me wrong though when it sold off below 1075.

The problem now is how to count the move from 1131? So far, I can count seven waves, i. e. corrective. Thus, it's possible that wave [b]/[ii] finished today.

But it's also very possible that the motive wave started on Monday is still underway. The possibilities are that we've seen either a series of 1-2's or that we'll get an extended fifth wave.