S&P 500 ~ Elliott Wave Count 21 July 2010

4.5 hours into the day the market was still unchanged and it began to look like a "For that I've wasted 6.5 hours of my life!?" day but fortunately uncle Ben started to talk just in time to save the day.

The SPX sold off 1,5 % within 15 minutes, tried to stabilize at the 1070 level but eventually broke down. At 3 pm it hit the LOD at 1065 and then bounced a bit around in the last hour to close at 1069.59 (-1.28 %).

So, we saw indeed an "INTC déjà-vu" today.

I expected a pullback today in the bearish and the bullish count, so the bullish one is still alive.

If the bearish count is underway the market should make a new low today (gap down? = wave [1]) and then possibly close the gap (wave [2]). If the bullish one is underway though the market should rally all day long (start of wave (iii).