Daily Analysis

By: TheWaveTrading | Thu, Feb 2, 2012
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My main attention remains focused on the EW pattern that price is unfolding from the October 4 low.


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For the immediate time frame, the potential short-term reversal is still in force but it is being seriously challenged.

EW wise, if price is tracing a Flat or a Triangle wave (4), then price has to carry on to the down side yesterday's eod selling.

The key # is 1321.41 (SPX) since the overlap below this level is needed if price is unfolding a Triangle or a Flat.

Below I show the Triangle option:


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Daily momentum indicators are still suggesting that price should be involved in a correction with both the daily Stochastic & MACD with a bearish cross in force.


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Despite that the technical "conditions" are suggesting a larger corrective pattern if price kills the short term bearish set up it would mean that the up leg off the December 19 low is not over and we will have to wait for another topping pattern probably in the next horizontal resistance located in the 1347 area.

I am taking a long weekend holiday, so there will be no updates until next Monday.

Take care.

 


 

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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