Tuesday, May 31, 2011

S&P 500 ~ Elliott Wave Count ~ 31 May 2011

The SPX has been in a downtrend channel for the whole month - until today.

After the long weekend the market gapped up today and rallied more than 1 %:

It's been quite difficult to label the waves the past few weeks but since we're outside the channel now I think the bullish count is underway and we should see a rally to 1370ish next. Short-term support levels are at 1335 and 1328-31 which should hold if we're indeed in a new uptrend.