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.

SPX
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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

 


 

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.

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