This is a brief update (Tomorrow morning I will not be able to post the daily
SPX follow up).
Today has been a big day for the bulls.
SPX ended with an impressive bullish Hammer.
Price followed the path of the suggested double top target, establishing the
lod very close to the 200 dma from where it reversed strongly to the upside
with the help of good news regarding the fiscal cliff.
What matters is that this up leg is impulsive; therefore (barring a miracle
for the bears) it has completed the small correction from last Friday's hod.
If the wave (V) is in place (caveat: since wave (III) < wave (I) the wave
(V) cannot exceed 10.54 points) then I expect a pullback in the range of the
0.382-0.5 retracement, from where the wave (3) should kick off.
Regarding the overall pattern form the September 14 high please read yesterday's
post.
For the time being I expect a Zig Zag up off the November 16 low with a potential
target for the assumed wave (C) at 1451 if the 1 x 1 extension target is fulfilled.
On the way to the extension target bulls will have to overcome strong resistance
at the 50 dma = 1425 and the November 6 peak at 1433.38.
Contact: If you would like to contact the author, you can e-mail him
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The main objective of this project is to share my views on several markets
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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
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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
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