Weekly Analysis

By: TheWaveTrading | Sun, Nov 6, 2011
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My long-term count remains the same:


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Therefore I am assuming that:

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The bearish set up has to be confirmed.
If price recovers above 1263 the bearish scenario could be killed.

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In addition CPCE is on the bullish side:

Put/Call Ratio
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ES Globex has corrective down side action + a five up off Friday's lod which is suggesting that there could still be a pending wave (C) up in order to complete the Double ZZ

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Anyway the EUR should limit any unfinished business to the upside if the its Double ZZ is completed, shaping a likely bear flag. (As I am writing it has opened with a gap down)

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On the Technical front we have:
a) Mixed signals from momentum indicators.

Momentum Indicators
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b) Overbought readings of Breadth indicators:
Judging from the NYSE % of stocks above the 50 dsma & the weekly stochastic of the Summation Index the market is overbought. The odds of a large reversal are large.

NYSE Stocks Above 50-Day MA
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NYSE Summation Index
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c) Negative divergence of the NYSE 10dsma of the Adv-Dec. Volume

NYSE Adv/Dec Volume
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Author: TheWaveTrading


Contact: If you would like to contact the author, you can e-mail him at thewavetrading@gmail.com

The main objective of this project is to share my views on several markets and asset classes.

In the initial stage TWT website will be a free service.

My main focus will be the equity market with SPX being the leader but I will also follow US equity sectors, major European indices, fixed income, currencies and commodities markets.

My analysis is based upon traditional Technical Analysis, Elliot Wave guidelines and investor sentiment.

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