Daily Equity Analysis

By: TheWaveTrading | Tue, Nov 22, 2011
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Friday's high CPCE and SPX Doji did not prevent the fourth daily loss in a row.

SPX is now oversold:

SPX
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McClellan Oscillator
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Price has reached the target range for a potential reversal = 0.5 retracement & extension (1x1) for the assumed wave (C) of (B).

I maintain the scenario, which calls for a Zig Zag that should allow one more large up leg with a target above the October's peak.

My line in the sand remains the gap at 1155.46 SPX and indications that the structure of the pullback remains corrective, which at the moment is the case.

Since yesterday's rebound off the lod looks more corrective then impulsive I am expecting another lower low where a bottom could be established today.


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In addition to the potential corrective wave structure we cannot forget that there is an historical "proven" bullish seasonality into Thanksgiving, hence time is running out.

Potential EWP:

The Ending Diagonal option has been killed.

Hence I am working with the following bullish set up:

EW Count
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No need to say that today's price action is critical for the bullish set up.

Probably the major "ally" for a bullish resolution is the EWP of the EUR which calls for a potential Ending Diagonal wave (C)

EURUSD
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TheWaveTrading

Author: TheWaveTrading

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.

My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on the long and short side and mainly with leveraged ones (2 x & 3 x).

The advantage of ETF investments is that it allows getting involved in equity indices & sectors, currencies, fixed income, commodities etc.

Therefore the main purpose of TWT will be to establish investment strategies regardless if the market is in an up trend or in a down trend, leveraging the chosen scenario while managing the risk by establishing protective stop losses.

Hence I will always define the risk, I will try to let winners run the wave and I will cut the losses if my strategy is wrong.

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