As you know atm I am only interested in the time frame from the October 4 low.
In this time frame I reiterate my bullish stance.
The reason is very simple:
The corrective pullback occurred from the end October to the end November indicates that the EW pattern from the October lows is not over yet. Therefore a reasonable bullish resolution will bring higher prices ahead.
You also know that I have been working with 2 potential scenarios:
- Triangle wave (B)
- ZigZag (ABC), with wave (A) & (B) in place.
For the time being my primary count remains the ZZ option. I have the line in the sand in order to switch the preference with a eow print below 1215
If this count is correct price has to confirm a bottom pretty soon.
The upside potential for the assumed wave (C) = 1375 zone
Regarding the short term EW pattern, I am working with a DZZ that could have been completed at yesterday's lod.
In addition we have a potential Inverted Head & Shoulder which is worth 109 points.
NDX is also "emanating" bullish vibrations. Here price should be involved in a large DZZ, but within the possible longer-term pattern, I am only interested in the wave structure from the November's low. Which in my opinion calls for a pending wave (C) up.
Yesterday's bullish Hammer + the golden cross between the 50d & 200 d MA is strengthening the odds of a bullish resolution.
What remains a pain in the neck is the EUR.
We all know that without a bottom in the EUR the bullish resolution of the equity pattern could be delayed.
I have been looking to several corrective options but none seems to be ok.
Instead maybe we have an Ending Diagonal in progress.
Today we have FOMC day then on Friday quarterly OPEX
Countdown to Christmas = 9 trading days