Sunday, September 4, 2011

SPX Current Elliott Count

There is still an option for a larger rally, but it's less likely after Friday's action.  The bulls main hope would be if we replaced the minute iv and v with "a" and "b" because Friday's move was clearly an impulse down.  The only thing that makes me nervous about this count is it seems like too many technicians are expecting it. 

One possibility (not shown) would be a triple zigzag.  In that scenario, we would now be forming an X wave (see (b) for example) and would then form another move upward like (a) and (c).  That would confuse the greatest number of market participants, so I would consider it a reasonable possibility.  I'll try to warn you if it looks to be unfolding.

No comments:

Post a Comment