Tuesday, October 19, 2010

S&P 500 ~ Elliott Wave Count 19 October 2010

Bear porn today! The SPX lost over 1.5 %!

Last time the SPX decline more than 1 % on one day was on Sept 7th by the way.

So, was today the comeback of the bears or just another bear trap?

So far, the decline looks corrective (three waves from 1186) thus this could either be wave [iv] of 3 or a part of wave 4:

Either one of those counts is underway or the long-forgotten bearish count. Remember, 1180 was never breached so the bearish count is still a possibility to consider.

However, I'm still leaning towards the bullish count expecting a nice end of year rally.