As expected, the S&P completed w.i circle and rallied. I've labeled the substructure for your review. Second waves typically retrace 50%- 62% of the previous wave, with 62% being most common. By looking at the current wave structure, there are a number of possibilities that could be unfolding. I'll have to see more of the wave structure to be certain but I will post an updated chart and discuss the implications thereof.
Crude Oil
I want to take a moment to update readers on Crude Oil. On 1/24/11, I alerted readers that Oil would find support between 8465 - 8510. The low to the exact tick was 8510. If you would like to review that video click here: http://elliottwavelive.blogspot.com/2011/01/heard-on-street-s-gold-oil-and-usd.html
Prices have rocketed and challenged the previous high of 9325. If my wave count is correct, traders that missed the termination of w.4 may get another shot as prices should decline over the next day or so to the area surrounding the previous fourth wave (8845) or the .618 retracement (8805).
I'll be monitoring this closely as this may be one of the last opportunities to ride the w.5 impulse wave to $100 - $110 .
I hope you found this update helpful.
Bst of Trading.
The wave count on the S&P will be invalidated with a print above 122950 as w.ii, circle can't exceed the origin of w.i circle.
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