SPX: Follow Up of the Short Term EWP

By: TheWaveTrading | Thu, Aug 30, 2012
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I don't have much to add and there is so far nothing that suggests that I should modify my preferred scenario.

I remain confident that:

Therefore given the price structure I don't think that an intermediate trend reversal is underway.

SPX: Complex Triple Zig Zag
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Regarding the Immediate time frame I maintain working idea that the probability that price will carry out a Zig Zag down is large with a potential target at the rising trend line in force since the June lows.

Price is trapped between the 10d = 1412 & 20 d = 1404.

We are in a holding pattern as dips are bought and rebounds are sold.

This back and forth action could be unfolding a bearish Triangle wave (B) that would open the door to the wave (C) down.

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CPCE is hitting the upper Bollinger band; hence odds are large for a move up by eod. (I am not saying that the tight trading range will be broken)

CBOE Options Equity Put/Call Ratio




Author: TheWaveTrading


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