Tuesday, October 26, 2010

S&P 500 ~ Elliott Wave Count 26 October 2010

The SPX gapped down today and then found support in the 1180 area which I mentioned yesterday as an important level. Although 1180ish held the potential ending diagonal doesn't look like a diagonal anymore, it's more like a channel now:

Of the two short term counts I posted yesterday the expanded flat looks now much better (see chart above). As long as the SPX stays in the channel I won't rule out a rally to 1200 though:

- Break below the channel: expanded flat count, expecting 1170 and 1160 next
- Break above 1192: the SPX may hit the upper channel line again between 1200-1210

Comparing Oct 09-Apr 10 to today:

Top on Nov 11th?