An Old Trendline Still Kicking

The cash S&P500 put in a downtrending bar on its daily chart yesterday. Is the a-b-c zigzag pattern from the March low complete? I don’t know yet. At this time we still have to wait for a break below 1369.84 for confirmation.

Yesterday I showed that the market had run into a tight cluster of Fibonacci ratios related to the “a” and “b” waves of the current zigzag. Today I want to point out that the old “0-b” trendline drawn across the October and December 2007 highs is still operative. A reaction to such an “old” trendline strengthens my conviction in the count.
Timing. Yesterday I stated that the zigzag does not have to be complete until May 7. It can complete earlier. Last Friday I said “I can foresee a choppy, but overall upwards move in the S&P500 that lasts at least into the Autumn and perhaps into 2009.” More specifically, the upward move that began March 17, 2008 will not peak until at least the first week of September. We will once again have to be on guard this year for an October swoon.