Daily Analysis

By: TheWaveTrading | Thu, Apr 19, 2012
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SPX short-term price action:

I cannot modify my preferred short-term scenario. The EWP from the April 2 peak unquestionably calls for at least one more down leg, which has to be an impulsive wave (C) down.

The internal structure of the current rebound is clearly corrective, adding confidence in the idea that price is unfolding a counter trend wave (B).

What is not clear yet is if the assumed current wave (B) rebound will stop at the 1398 area or it will attempt to retest the April 2 peak.

If the wave (B) tops in the 1398 area then the following wave (C) down could breach the 1340 support zone.


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I am going to monitor the DAX since it seems it is now in the process of realigning with SPX's EWP, therefore the extent of the current rebound should give us indications regarding the upside potential of SPX wave (B).


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For the time being I will put aside the longer time frame ideas until price confirms this "logical" short-term scenario.

 


 

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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