Monday, October 25, 2010

S&P 500 ~ Elliott Wave Count 25 October 2010

The SPX almost hit 1200 today so it looks like I was a bit early to label 1189 as the high of wave 3.

Medium term my forecast hasn't really changed though, I still expect some sideways action for the next weeks (end of wave 3 and wave 4) before the end of year rally starts (wave 5).

Short term I see two possibilities. Either today's high is part of an ending diagonal (see chart below) or it is a wave b high of and expanded flat in the wave 4 position. As long as 1180ish holds I think the ending diagonal is underway and the SPX should hit 1200 tomorrow: