Dan summarized everything in
his SPX daily chart today. I labeled the rally to September 23 high as (W)-(X)-(Y), and he counts it as (A)-(B)-(C), but they mean similar thing.
This is one of the bullish wave counts, and remember that 1121 in
SPX is 50%
retracement level for the entire decline from 2007 October to 2009 March. You can see the Fibonacci
retracement in
Cobra's weekly chart below.
This chart also shows you the Fibonacci relationship from timing perspective.
- The rally from SPX 666 to 1080 high on September 23 is a Fibonacci 0.382 of the previous decline in terms of time.
- Inside the bear market rally, wave (C) is a Fibonacci 0.618 times wave (A) in time.
- Wave (A) takes 14 weeks and wave (B) and (C) together takes the same time.
It seems 1080 is a good stop point for
SPX, but we will know soon whether market can make a new high to 1090 to 1121 level.
This is one of the bullish wave counts, and remember that 1121 in SPX is 50% retracement level for the entire decline from 2007 October to 2009 March. You can see the Fibonacci retracement in Cobra's weekly chart below.
This chart also shows you the Fibonacci relationship from timing perspective.
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