I am almost on holiday hence starting from today, daily posts wil be brief
and from next Saturday until January 8, I will probably not able to share
my views.
Despite Tuesday's extreme high reading of TRIN = 0.17 and a sell off of NDX
SPX managed to achieve a marginal higher high but the eod candlestick = Hanging
Man could be a warning that a pull back is due.
I remain bullish for the short-term time frame given the reasons I have discussed
several times, but I am also very cautious since price has not given enough
clear information in order to have enough confidence to grasp on one of the
potential EW patterns that in my opinion are the candidates to unravel the
complex pattern that price has been unfolding up to now.
If we focus only on the pattern from the November 16 low, a potential impulsive
up leg followed by a corrective pull back, it seems reasonable to expect more
upside.
But the larger time frame pattern from the October 4 low, despite being bullish,
opens the door to several EW patterns that have been already discussed in
depth.
A major worry is related to how price will react when/if it approaches once
again the obstacle of the 200 dsma which today stands at 1259.50
In the daily chart below we can see that price has been tracing corrective
moves. In order to obtain a directional price needs to overcome the 200 dsma
and achieve a higher high above 1267, otherwise the undecided moves could
continue with a Triangle or Double ZZ that could shape a bullish flag.
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.
Disclaimer: The content of this article is for educational purposes
only, the information supplied is not a recommendation to buy or sell any
security or financial instrument.
Thewavetrading.com nor the owner can not be held responsible for any loses
occurred from the information provided within the website.
The Information supplied cannot be copied or reproduced without the permission
from the owner.
Circle Us