Wednesday, May 25, 2011

S&P 500 ~ Intraday Update 1 ~ 25 May 2011

The 1319 level didn't hold so the bearish count I mentioned last week is now an alternative we have to consider (orange labels):

As you can see we're still in the blue channel so I don't want to commit myself to the bearish or the bullish count. A break out of this channel should help to determine which count is underway so it'll be very interesting to see what happens in the next few days.

If we break down then I think a big expanded flat, which started in February, is underway (3-3-5) which should bottom somewhere in the 1260 area.

If we break higher then wave [iii] should be underway to 1400+.