Wednesday, February 9, 2011

S&P 500 ~ Elliott Wave Count 9 February 2011

The SPX has been going sideways since Monday and it looks like this is just another consolidation before the next rally.

I think you've already noticed that February 1st looks very similar to Sept and Dec 1st last year and I think you all remember what followed:

September was up 90 handles, December 80 handles.

If we add 80-90 points to the January closing price we get 1370ish right in my next big target area.

The 1310ish level should be support now. Until we break below 1275 the uptrend is still intact. Next targets are 1335ish and then 1350-70.

Short term it looks like we've completed four waves from 1275 so far. The potential wave (iii) looks a bit short so it may be only wave i of (iii) and iii of (iii) has yet to come (similar to December).