SPY - Elliotte Wave analysis (30 Sept 2008)

Actually, when I did the Elliott Wave analysis on the 28 Sept 2008, I was hoping that the 5th wave would not be the 3rd wave. I was very wrong

The Congress rejection of the 700 billion Bailout plan will mean that the 3rd wave will have a longer life. Hence, I have to upgrade the 5th wave to 3rd wave (since 3rd wave is the most powerful).

For now, I have been basing my analysis from a day to day basis. I discovered that the fib levels were spot on as compared to weekly or monthly analysis.

Potential upside: Congress pass the bailout bill
Potential downside: Bad Earnings ahead, more company failures, nervous investors get their money out from funds (force selling), bad economic data.