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.
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).
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.
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