Thursday's hammer at a key support level was confirmed on Friday by the upward move and the test of the previous support.It does need to close above this 68/69p level to make me feel more comfortable that further gains should follow though so I've still got my stops just below the hammer low of 63p as it could just have been backtesting the breakdown on Friday. Original link...

I'm going to continue to use this 4 hour chart until it stops being useful as a way to see what's going on just because it has twice as much detail as the daily chart and we're looking at relatively short term moves.I've put on here a possible count for this move down from 166p. I've labelled the count based on EWT rules allowing for crossovers and wave patterns. Having done this, it then seems to look more like a corrective wave than anything else. That would make it part of a wave 2 down rather than the wave 5 of C previously discussed. If so, then we ought to be in the final sequence of that (which would be wave c of 2 and should have 5 mini subwaves within it) and it points, again, towards that target area of 137-141p. There could be alternatives to this so I'm...

Today marked a higher low in the Dow Jones at the 78.6% Fib which could possibly signal that 14844 a few days ago was the bottom of the correction.I can't be sure of this yet, but based on the FTSE and S&P's charts it seems likely. In order to confirm this there now needs to be a break above 15300 to form a higher high and that will be our cue to go long. WIde stops would be needed however as volatility is very high in the indices now so we must be very careful as Original link...

A very simple chart today for the S&P500. It hit the uptrend support from the Nov lows again today at 1608 and a strong rise saw it find resistance at the short term downtrend.A break of either of these ought to signal further moves in the relevant direction. Note also that today formed a bullish engulfing candle so I favour the upside here after a retrace to half way down today's candle. Original link...

Right then. We closed today with a hammer on the daily chart. This is much more convincing than those from the 4H and hourly charts from yesterday, particularly because this time there was also a repeat of the 4H hammer but this time it followed through and was bought.I still have a number of concerns about whether this is genuine though. Firstly, it's still barely touched the 50% Fib and after such a strong downtrend and an uncertain move from 141p to 166p I'd still normally have expected a wave 2 to go below the 50% Fib.Secondly, volume again was weak and it didn't take a lot to push the SP up from 152p where it was trading only  seconds before the close. In fact it took less than 10k to move it from 152.5 to 155p. Thirdly, the candle body is really a bit too large for a true hammer...