24 Oct 2012

Lower low and possibly an ending 5th wave for the SPX.  Looking for a rally on the stoch. The Daily chart shows divergence and stoch still pointing down.  60min chart shows a slight lower low which can be enough for a full wave count for 5th but this can turn to a totally different wave count sooner than later, so we want to follow the indicators.  There is a risk of a rally so I would stay out and watch until the morning to see if I would go short again or not.

Possible Bullish EW count to finally end the move if we rally towards the presidential election due in a few weeks.

A drop across the 400 range will trigger its Sell Signal.