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Sunday, September 12, 2010

S&P 500 - Close to the wave 2 top?


The last couple of days has been pretty slow and hasn't done much to help deciding which count is right and which is wrong.
I still prefer the 1-2 count and the latest price action does look like and small ending diagonal for minor wave c of 2. If this is the case, we shouldn't see much more upside progress. Maybe a small spike up Monday morning followed by a quick reversal to the downside.
A break below 1,091 should be enough to close any further possibilities to the upside.
However if we do see a break a clear break above the minor resistance line, then the red alternate count takes over and we should see the rally carry on to the 1,159 area, before we will finally be ready for wave 3 down.

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