SPX: Follow Up of The Short Term EWP

By: TheWaveTrading | Wed, Sep 5, 2012
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I am clueless if the last assumed wave up will be launched from 1398, which is the persistent support or from 1390-1385.

I have mentioned that the SPX Bollinger Band set up is calling for an "imminent" resolution of this tedious sideways move.

Yesterday price rebounded off the lower BB leaving a potential bottoming candlestick (Doji), in addition the 10 d has reached the 20 d MA which should not issue a bearish cross under the scenario of a bullish resolution.

I will maintain a short-term bullish bias as long as price does not breach the trend line support in force since the June lows, which today stands at 1381.

SPX Daily
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Despite the unclear short term EWP the McClellan Oscillator has issued a buy signal suggesting that price could attempt a break out to the upside.

McClellan Oscillator

The VIX potential BB buy equity set up did not play out, but I still believe that the odds of at least a pullback are larger than an extension higher.

At least a short-term top would be confirmed by closing yesterday's gap up at 17.43

We cannot rule out that the VIX could establish a higher low if the 20 d MA holds.

The size of the expected "retreat" will give us clues regarding the potential upside move of SPX.

VIX Daily
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We are approaching two major event risks:

Tomorrow: ECB meeting
On Friday: NFP

 


 

TheWaveTrading

Author: TheWaveTrading

TheWaveTrading

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