SPX Daily Chart - 7 Feb 2011

     While we note the ongoing bullish position of the higher level time frame charts it is time to quickly update the daily chart (shown above). Last time it was pointed out that the daily chart should be monitored for wave 5 completion. At this point that would take a move below the 1275.1 level. The wave 2/4 trendline is shown as this is a typical line to watch in elliott wave work.
     Today I also did a few fibonacci calculations for the current D-Wave structure. Note the tight cluster just under the 1335 level. 1333.58 is twice the 2009 low. The other two lines are based on the lengths of waves one and three from the July 2010 low. Just for fun: 1333 is a 120 degree angle on the Gann square of nine chart. 664 is zero degrees.
     Finally it must be noted that we are sitting at setup bar five of a potential 9-13-9 sequential reinforcement pattern. If the sequence were to continue we would hit bar nine this Friday.
     The daily price pulse chart would signal an early warning of a possible trend reversal should we break below the horizontal dashed line noted at 1294.83.
     Bottom line: As of now the daily chart, like those of higher time frames, remains in a bullish position.