S&P 500 ~ Elliott Wave Count ~ 28 April 2013

Last week we got another big rally after the support at 1540ish was touched. Once again, we saw the importance of using key support and resistance levels together with the Elliott wave theory.

If you've followed my blog for some time now, you know that I want so see a convincing break of predefined key support or resistance levels first, before I turn bullish or bearish.

1540ish is such a level. It was never breached last week and thus I never turned bearish despite the Elliott wave count looking very promising for the bears.


Elliott wave count:

After a quick decline to 1540 we're back near the highs. Nevertheless, I still think that upside should be limited:

(previous count)