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Yesterday’s analysis expected downwards movement for Friday’s session which is exactly what happened.

The wave count remains the same, with still just the one daily and one hourly chart for you.

Click on the charts below to enlarge.

S&P 500 daily 2013

At 1,740 intermediate wave (C) would reach equality with intermediate wave (A). At 1,739 minor wave 5 would reach 0.618 the length of minor wave 3.

If price rises through this first target the next target will be used. At 1,849 minor wave 5 would reach equality with minor wave 3.

When minute waves iii and iv within minor wave 5 are complete I will add to the target calculation at minute wave degree, so at that stage it may change.

Within minor wave 5 minute wave ii may not move beyond the start of minute wave i. This wave count is invalidated with movement below 1,560.33.

Minor wave 1 lasted a Fibonacci 21 days, minor wave 2 lasted a Fibonacci 8 days, minor wave 3 has no Fibonacci duration at 98 days, and minor wave 4 lasted 22 days, just one day longer than a Fibonacci 21.

Minor wave 5 may not exhibit a Fibonacci time relationship. The next possibility may be the 29th of October (give or take two days either side of this date) where minor wave 5 would have lasted a Fibonacci 89 days. This is a date to look out for, but cannot be relied upon because Fibonacci time relationships do not occur often enough to be reliable.

Keep drawing the wider parallel channels from the monthly chart and copy them over to the daily chart.

S&P 500 hourly 2013

On the five and one minute charts the final fifth wave within minuette wave (iv) is incomplete. I would expect at least a little more downwards movement to begin Monday’s session, but not too much. It may end about the 0.236 Fibonacci ratio at 1,705.83.

Minuette wave (iv) is showing perfect alternation with minuette wave (ii); minuette wave (ii) was a deep expanded flat, and minuette wave (iv) is a shallow zigzag.

At 1,748 minuette wave (v) would reach 0.382 the length of minuette wave (iii). If minuette wave (iv) moves lower this target must move correspondingly lower.

Minuette wave (iv) may not move into minuette wave (i) price territory. This wave count is invalidated with movement below 1,641.18.