SPX daily update
Wednesday, July 29, 2009
Hello friends. Really hard time today counting those waves and extrapolating some conclusions.
Yesterday the ending diagonal was my favorite scenario. But after today I think this market has a little more to go. The reason (besides the impulsive movement i have talked yesterday) is price movement. It is common for both waves 2 and 4 to have approximately the same price movement.
With this count, blue and rose waves 2 and 4 have approximately the same price movement. If this is right we should go near 1000 points in conclusion of red wave 1. If not, we finished red 1 and we are retracing to 941 minimum.
PS: I'm out and only short if index tests 1000 points area. It's not really safe to take any positions at this time. Negative divergences don't let me take the long side and this count don't let me take the short one.
Best to your trading
PH
