Wednesday, October 6, 2010

S&P 500 ~ Elliott Wave Count 6 October 2010

The SPX consolidated today after yesterday's big rally. Despite the new rally high I'm still standing aside; the market is still below/above my key level to turn bullish (1175)/bearish (convincing break of 1130).

Both Elliott Wave counts are still valid. Either we're in a third wave up to 1250-1300 or about to finish Minor wave 2. I slightly tend to the bearish count because of various reasons (EW count looks good, smart money is moving out of stocks (in fact they haven't been that bearish since December 08 (read here but as long as the stock market rallies day after day without any correction there's just no reason for me to turn bearish.