Monday, December 6, 2010

S&P 500 ~ Elliott Wave Count 6 December 2010

Since not much happened today in the markets I'd like to post the following chart:

I just love this chart! The weekly MA 76 & 200 work so well! The orange line is just a guess how red wave (2) (see long term chart below) could unfold. I think we'll get a retest of the MA 76/200 early-mid next year and then a bounce higher.

Short-term I'm still looking for a wave [i] high followed by wave [ii]:

The SPX is approaching the yearly highs and imo this is a good place for the high of wave [i]. So, I'm expecting a second wave to unfold soon. A possible objective is the 1200ish area. The market should find support there and then move higher.