I have posted a ST chart on the SPX with some comments. I
tend to favor slightly higher prices yet for wave 5.
In the bigger picture, the bearish view would be that the SPX is
completing an ABC up off the bottom and will begin to reverse down
HARD while the bullish view would be for a partial retracement of
this last advance that began at 1010.
My chart below shows a completed abc expanded flat off the
1097 high (not 1099)
This would imply that the 1088 low this morning was a 3-3-5
(abc) expanded flat off the 1097 wave 3 peak. Notice the
b-wave of the flat exceeded 1097 to 1099 and then the c-leg fell
below the a-leg low of 1095 to 1088. This is very typical
behavior of an expanded flat where b=1.22a and c=1.62a.
This wave (4) could also morph into a triangle if it drags on in
time.
To get another push up as I discussed below, the SPX should
really close above the 50 day MA at 1094. Clearly, the upside move
is losing momentum and starting to wane.
SPX View
Posted by steve on 14th of Jul 2010 at 12:16 pm
I have posted a ST chart on the SPX with some comments. I tend to favor slightly higher prices yet for wave 5.
In the bigger picture, the bearish view would be that the SPX is completing an ABC up off the bottom and will begin to reverse down HARD while the bullish view would be for a partial retracement of this last advance that began at 1010.
Reminder that options expiration is Friday.
abc corrections
Posted by bensjoyce on 14th of Jul 2010 at 12:30 pm
Steve- In abc corrections must c always (or usually) is lower than a??
Fomc minutes at 2pm. I was thinking the minutes may complain or worry about the economy, causing the S&P to go down in c.
must c be lower that a? can it stop above a? ie does not take out todays lows.
Bensjoyce
Posted by steve on 14th of Jul 2010 at 12:38 pm
My chart below shows a completed abc expanded flat off the 1097 high (not 1099)
This would imply that the 1088 low this morning was a 3-3-5 (abc) expanded flat off the 1097 wave 3 peak. Notice the b-wave of the flat exceeded 1097 to 1099 and then the c-leg fell below the a-leg low of 1095 to 1088. This is very typical behavior of an expanded flat where b=1.22a and c=1.62a. This wave (4) could also morph into a triangle if it drags on in time.
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I will post a triangle diagram above.
Follow up Comment
Posted by steve on 14th of Jul 2010 at 12:48 pm
To get another push up as I discussed below, the SPX should really close above the 50 day MA at 1094. Clearly, the upside move is losing momentum and starting to wane.
Yea
Posted by orderstat500 on 14th of Jul 2010 at 12:25 pm
Thanks for clarification
Thank's for the enlightenment, Steve.
Posted by lsherrer on 14th of Jul 2010 at 12:21 pm
Thank's for the enlightenment, Steve. You always seem to know what I need to know and you come up with the answer when I need it.