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Monday, February 27, 2012

$SPX: Multi monthly HS neckline (dotted orange), working so well as resistance and support.

As we posted, on last weekend, our count has been relabeled and we have, now, an alternate count with the possibility that primary wave B continues in play. This is because we have our method of counting and is, using the body of candlesticks and,exactly, where  the last price was placed. Also, in the last weeks we have been showing a HS formation ( orange) and its neckline ( dotted line in orange). Sticking to our method of counting we have relabel our primary wave B, but the neckline is working fine and we have alert about this circumstance in our blog.

If we count, such as a lot of traders do it in their blogs, we will need an alternate "clue line" as shown in the chart below ( dotted black blue line) and our primary count will continue in place and with the circumstance that price has rebound today, exactly in the vertices of both lines.

In both counts, $SPX is due for a retrace.

As you can see,this is a matter of method or techniques to draw the lines. Take your own decision, if this charts can help you. Cheers!

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