Thursday, August 5, 2010

S&P 500 ~ Intraday Update 1 ~ 5 August 2010

The short term count I posted yesterday looks not too bad now. So far we got a double three correction (flat-flat) in the second wave position. It's possible that wave (ii) extends even further, so at the moment we can just sell the high of the tight channel and buy the bottom and wait until it breaks.

If the SPX breaks to the downside we should test the lower trendline of the diagonal (around 1110 today) or even close Monday's gap. A convincing break through 1130 though should lead to a rally to the high 1100's.