During this week I have been discussing my preferred short-term scenario so
I will keep it short.
The "foundation" of my short-term bearish bias is justified by three technical
reasons:
A complete 5 wave up leg sequence (from September 5)
Weakening of the McClellan Oscillator.
Initial reversal of daily momentum indicators from extreme overbought
readings.
The short-term internal structure, despite not being impulsive, hence apparently
it could just belong to a shallow pullback pattern, is not being aggressively
bought. This is a sign of weariness. It seems that SPX is involved in a short-term
holding pattern maybe by the action of the OPEX players.
So this is a waiting game, since the pattern unfolded by price still favors
the bulls until we have a lower low < 1456 and we see increasing selling
pressure.
Yesterday's price rebounded as expected but with an overlapping internal structure
therefore we only got a doubtful Expanded Ending Diagonal. But if the down
leg becomes impulsive then the odds that the short-term trend is resuming
its path to the down side will substantially increase:
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.
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only, the information supplied is not a recommendation to buy or sell any
security or financial instrument.
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occurred from the information provided within the website.
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