Keene Little : 8/3/2008 10:15:31 PM
Monday's pivot table: Link
On Friday I kept thinking the price pattern was going to consolidate for a bit and then we'd see a 5th wave down to complete the leg down from Thursday, and that's shown in dark red on the SPX 10-min chart: Link
. But now I'm thinking the length of time it was correcting was indicating a more immediately bearish scenario (pink).
The pink wave count is looking for a little higher on Monday but then tip over and start to sell off more strongly. A quick selloff to 1200, probably by Wednesday, would be in the cards for that scenario. So heads up if we see a higher bounce followed by a break of Friday's low whereas a quick low on Monday could be followed by a bounce into Tuesday before turning back down again (ready for a little more whiplash?).
On the 120-min chart and daily chart I continue to show a more bullish potential for a rally up to the 1325 area this week before turning back down (pink). A rally above 1285, last Thursday's high, would confirm that one. But with Friday's corrective sideways/up bounce I'm thinking the most we could see is a bounce up to the 1270 area either Monday or Tuesday and then start to sell off more strongly. Monday's early price action should help answer which one is likely playing out.
SPX 120-min chart: Link
SPX daily chart: Link
OI Technical Staff : 8/3/2008 9:59:59 PM
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