SPX UPDATE OF THE LONG TERM COUNT: TRIPLE ZIG ZAG WAVE (X)
Before I leave for the summer holidays I wanted to review the Long-Term EW count.
The main theme remains unchanged: From the 2000 Top price is unfolding a Double Zig Zag, therefore now price is involved in completing the wave (X). Once the wave (X) is in place price will begin to unfold the second Zig Zag down towards the 2009 lows.
The wave (X) is by definition a corrective countertrend move hence it has to unfold either a Zig Zag (3-wave) or a Double Zig Zag (7-wave) or a Triple Zig Zag (11-wave). In my opinion the TZZ is a coherent option.
If a TZZ is the correct pattern then at the May peak price has established the wave (A) of the third Zig Zag. What remains unclear is if price has resumed the intermediate up trend with the missing last wave (Z) up (With an impulsive sequence or with an Ending Diagonal); Blue count, or if from the May 22 high price is still involved in a large corrective pattern (In which case price should trace out a Flat or a Triangle); Red count.
As a result in the weekly chart below I bring up three scenarios:
Another possible scenario presumes that the last Zig Zag that will conclude the wave (X) began at the June 2012 low; if this is the case the wave (Z) is tracing an Ending Diagonal.
