S&P 500 ~ Intraday Update 2 ~ 22 July 2010

In the past weeks we had many gap-up-huge-after-late-day-sell-off-and-then-rally-like-there-is-no-tomorrow days. Interesting is that all those days had a gap up, a midday consolidation and a late day rally.

Afternoon sell off yesterday? check

Gap up today? check

Midday consolidation? check

So there is the set-up for a late day rally today. I'd wait for a break of today's high though.

The two waves from 1057 have both the same length. So it's possible that this was just an ABC. But as I posted earlier it is also very possible that this is a (i)-(ii)-i. We'll probably know already in two hours which count is correct.

Edit 3.45 pm: Well... no late day rally today, 1100ish was too strong a resistance today.