Wednesday, October 5, 2011

S&P 500 ~ Elliott Wave Count ~ 5 October 2011

Yesterday's late day ramp was quite impressive and today we rallied another 20 handles so it looks like wave 5 ended at 1075:

So we should see a rally back above 1200 which might last until the end of the year.

There's still a small chance that this is a big bull trap as we've seen them often during the 08 bear market. We could count the waves from the highs as a 1 2 [i] [ii]:

The next few days should help us to determine which count is underway. As long as the SPX doesn't break below 1100ish I think the low is in. If we do break it though then we could crash to below 1000 (!). However, as said earlier, I really think the low is in and we could see a nice rally from the current levels.