Tuesday, May 10, 2011

S&P 500 ~ Elliott Wave Count ~ 9 May 2011

I think nobody would have complained if the market had opened only between 11.45 and 12.15 yesterday... ; )

As already posted last week the downtrend line was broken on Friday and then successfully retested the very same day:

If we get a convincing break of the 1354-57 area the odds are very high that we'll see a new high in my opinion. Above 1357 the next levels are 1370, the low 138x's and then 1400.

As you can see in the ES chart below we also got a break and retest of the downtrend line:

As long as the uptrend line, which is now in the low 134x's, holds we should go higher. A break of 1352-55 should lead to a rally to 1373.