Yesterday SPX had a choppy session to the down side. Absence of impulsive
action but maybe it was not an uneventful day.
Last Friday I posted a potential impulsive up leg off September 5 with a "thrust" out
of a triangle wave (4).
If this count is correct then the possibility of a high is large if today
there is follow through to the down side or if a rebound attempt fails and
establishes a lower high.
If price breaches the trend line support odds of some type of a top at 1474.51
will substantially increase. (Some type of a top = the corrective up leg off
the June 4 low is completed)
The weakness of the McClellan Oscillator is more intense; here we have a bearish
cross of its Stochastic and quite a pronounced drop of the oscillator, despite
yesterday's shallow SPX pullback.
Hence maybe Friday's Shooting Star has marked a peak.
If the up leg from the June 4 low is done, even though it looks like science
fiction that this market will ever drop, SPX should begin a corrective phase
to the down side which should observe some proportionality both time wise
and with the size that price has traveled measured by the Fibonacci retracements.
Just as a reminder the 0.382 retracement is at 1395.
Today I will monitor AAPL since yesterday's Hanging Man + a potential exhaustion
gap can be a reasonable candidate of a having established the top of the impulsive
up leg from the May 18 low.
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.
Thewavetrading.com nor the owner can not be held responsible for any loses
occurred from the information provided within the website.
The Information supplied cannot be copied or reproduced without the permission
from the owner.
Circle Us