Friday, August 20, 2010

Intraday Update (8/20/10)

[250PM] SPX/mini count update- Now there's enough squiggle to start a "bullish" count - see if it plays out.

[1206PM] SPX/mini count update - no change in the larger count. A potential ED may have just completed i-down (bearish) or [x]-down (bullish).

[730AM] SPX/mini overnight update -
A fresh low in the SPX e-mini completing a nice 5-wave down since the Aug 18th high. The following charts updates the bearish and near term bullish counts.

The bearish count has wave i of (iii) of [i] of 3-down approaching its end. After a brief bounce up, expect a forceful iii of (iii) sell-off.

The near term bullish count has wave [x]-down of 2-up approaching its end. Expect [y]-up of 2-up to carry the market to above June and August highs. Note the positive divergence on the 60min chart as well.