Sorry but today I don't have any inspiration to write a "productive" technical
update so I will keep it extremely short.
Yesterday bears failed to trigger sell stops below the critical pivot support
at 1422, instead dip buyers prevented a slump and achieved a potential bullish
candlestick with a large lower shadow.
Despite the set up clearly favors the bulls I remain skeptical as long as
bulls seal the deal by reclaiming the 20 d MA, which stands at 1445.
The internal structure of the down leg off the October 18 lower high is not
clearly impulsive hence maybe we don't have a terminal pattern.
This is why in the daily chart I put a question mark at yesterday's lod.
This price action at a pivot support + positive divergences on both the McClellan
oscillator and the RSI could allow the end of the corrective pattern from
the September 14 high. But we still have a sell signal issued by the Stochastic
on October 19 that has not been reversed.
If yesterday's bottoming candlestick fails then the obvious potential bottom
is located in the area of 1396.
We have to play close attention to the McClellan Oscillator since it keeps
showing muted selling pressure creating a large positive divergence. This
is a serious warning that price is involved in a bottoming process.
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