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Thursday, May 7, 2009

Elliott Wave Update ~ 7 May




Primary Count: SPX traced a Minute wave [iv]. The 897 low of the previous wave (iv) held so that is a good sign that this count is correct. The channel line held also. So now all it has to do is push one more time in a 5 wave move to close the gap at 929-934.

Any break lower and out of the channel indicates that 929 was likely a near term top and a deeper retrace is occurring. That would imply likely either an X wave or some kind of wave 2 of C pullback is another possibility.

But for now, the channel is holding so we must assume the market has one more push to a new peak in a five wave move. Again 897 is a key support level. Notice how the market stayed 4 points above that mark today as a "cushion". Some buying came in at the 900 mark for sure.

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