Friday, 2 November 2012

S&P wave count

Bulls managed yesterday to hold support and push prices much higher. Today we focus on what has changed in our wave counts given the new facts.

 For starters we have to cancel the bearish scenario that we were in wave 4 since it overlapped wave 1. Support at 1400 was held and bullish stop was not violated as mentioned yesterday. The bearish count calls for a second pair of 1-2 downward impulsive waves and we are currently in wave C of (2), which is about to top around 1442 (61,8% retracement). In pre market, prices have already reached 50% retracement. 

On the other hand bulls see the important low of 1397 not broken and the index rising upwards impulsively. At today's open the index will write a new high relative to yesterday. A pull back downwards and probably from 1440 level is expected whether the bigger picture is bullish or not. Resistance is now found at 1442 (61,8% retracement) and 1447 (upper pitchfork).

Critical support  at recent lows near 1404. If broken, then 1390-80 first target.

No comments:

Post a Comment