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.




Author: TheWaveTrading


Contact: If you would like to contact the author, you can e-mail him at thewavetrading@gmail.com

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