Tuesday, September 21, 2010

S&P 500 ~ Elliott Wave Count 20 September 2010

1130 was breached yesterday and the SPX rallied as high as 1145.

1130 is also the neckline of an inverse H&S. The target for this formation is 1250! So any pullback to 1130 should be a good buying opportunity:

Beware though if the neckline doesn't hold - we had a false breakout out of an H&S earlier this year:

Still no change in my Elliott Wave count... : ) Wave v continues to extend. The new "the-correction-has-started-level" is at 1135. Below that the wave from 1040 likely topped and either the big wave 3 down is underway or just the corrective wave [ii].