Wednesday, August 31, 2011

S&P 500 ~ EOD Update ~ 31 August 2011

The SPX hit my preferred target for wave [iv] today:

1230 is the 50 % retracement and wave (a) equals wave (c) so it looks like wave [iv] is completed (or almost).

Resistance levels are at 1230ish and 1260ish, support is at ~1205-10 (ES at 1200 and 1180).

If we decline below ES 1180 wave [iv] is most likely over. A sell-off below the rising support line (currently around 1150) should lead to new lows.