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.
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:
Down thrust out of a Triangle wave (B): If this is the correct pattern
yesterday's bounce cannot cross above 1209.43 and the missing wave (5)
down cannot be longer then 38.60 points.
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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