S&P 500 ~ Pre-Market Update 17 May 2010

Overnight the ES hit a new low completing five waves down from 1175. From that low it recovered and is now right below the 1140 resistance area.

Below a detailed count of the wave from SPX 1174:

It's possible that on Friday only wave (iii) completed and we are in a fourth wave.

But since second and fourth waves should alternate I prefer this count, wave (ii) was a flat and wave (iv) a triangle. Moreover, wave (i) equals about wave (v) and wave (iii) was extended.