S&P 500 ~ Elliott Wave Count ~ 21 January 2011

The SPX gapped up back into the channel and hit 1291 shortly after the open retracing about 80 % of the down move. An attempt to fill the gap followed which was stopped at yesterday's high around midday. Since then the market had been moving sideways and closed three handles higher at 1283. So the decision whether the top is in or not is postponed until next week.

The ES displays the waves nicer than the SPX imo, so for once I labeled the E-Mini:

There appears to be a five wave move down followed by three waves up, so, as long as 1288 holds another move lower is likely. The first down move was 29 points so 1288 - 29 = 1259 should be the next target which also matches my important support area at SPX 1260ish.


Have a nice weekend!