Tuesday, March 15, 2011

S&P 500 ~ Elliott Wave Count ~ 15 March 2011

As already written in my intraday update the SPX hit my second target area around 1260. We've got a huge bounce from that level and rallied all the way back to the previous support at 1290-5ish which is now resistance.

The big bounce from the lows today makes it very difficult to label the short-term waves (in pink). The potential fourth wave is quite big which is unusual - we've seen the same in May 2010 though, so, may be we're getting the same again.

So, I'd rather pay close attention to the support and resistance areas highlighted in the chart. Above we've got now strong resistance at 1295ish and 1305ish. Support below is the 1260 area and then the 1220-25 area.

As mentioned earlier today, I don't think this is the start of a new bear market (which I don't expect until 2012/13). If you're interested in my long-term outlook click here: http://www.wavaholic.com/2011/01/s-500-outlook-on-2011.html