Sunday, August 8, 2010

S&P 500 ~ Weekend Update ~ 8 August 2010

Edit Tue 9.40 am: I don't like the action here. We're below the diagonal trendline right now and if Friday's low break we could go down to 1088 and 1060-1070.

I've been following the 1-2-1-2 for quite some time now and next week should be a very bullish one if my count is correct. The rally should start as early as Monday and shouldn't stop until the SPX hits 1175ish.

Wave (iii) could subdivide as follows: 1130-1120-1160-1150-1175

If the market does not rally though and even drop below Friday's low then I'd discard this count and change to either the bearish one (Minor wave 2 topped) or the other bullish count (Minor 1 topped). First targets for both alt counts are the 1070 gap and the 1060 area.