Tuesday, December 7, 2010

S&P 500 ~ Elliott Wave Count 7 December 2010

The SPX gapped up to a new yearly high at 1235 today, sold off in the afternoon though and closed unchanged.

Wave 5 has already rallied 60 handles and came near my first target area (1245-50) today. If there is still a second wave to unfold it should happen now imo, so a retracement down to 1200-1210 this week followed by another rally towards 1300 later this month:

Another possibility is that the market continues to copy September. I've posted this similarity a few times already and it's still looking very good:

So, should we rally past today's high of 1235 I think we're on the September trip and just moving higher into year-end.