Friday, January 14, 2011

S&P 500 ~ Intraday Update 1 ~ 14 January 2011

Another new high today - the SPX hit 1288 a few minutes ago:

This may be the last up wave within this Intermediate wave (1). Wave (v) (of [v] of 5 of (1)) should peak in the 1290-1300 area (1292 being my preferred target).

After this, a bigger correction should occur (Intermediate (2)), 1200ish being my preferred target.

However, only because we've managed to get to 1292 doesn't necessarily mean that the SPX has to go down from there. So, waiting for weakness before shorting may be a wise decision ; )

A first sign that wave (1) may have peaked is if we decline below 1280. I'm very confident that wave (2) is underway if the SPX drops below 1262.