This is just a brief follow up since tomorrow morning I will be busy and today's
inconclusive price action with another small range body (Spinning Top) does
not add anything new to the short-term potential scenarios I have discussed
in the weekly technical update.
For the immediate time frame price remains range bound between the immediate
support at 1398.23 and the immediate resistance at 1423.73.
Theoretically despite being close to a potential break out the daily Spinning
Top is suggesting weakening of upside momentum, but it is unlikely to expect
a meaningful pullback ahead of the FOMC.
It seems that the market remains, so far, careless to Risk off news from Europe
and a potential, at least, short-term reversal of the EUR, the approaching
FOMC meeting may be the reason behind this benevolent attitude.
Therefore at the moment there is no clear edge within the potential EWP options
that I showed this Sunday.
Also it is strange that at today's eod we have VIX up Equity up and Bonds
up.
Additionally the scenario of a Zig Zag with a wave (C) unfolding an Ending
Diagonal is still possible as long as 1410.90 is not breached.
If this ED pattern plays out it could have a bearish outcome by ending the
assumed wave (B) off the September 14 high since we would most likely have
negative divergences in the final wave (V) of the ED.
Regardless of a potential pullback I maintain a bullish bias (until technical
evidence shifts to the bears camp) since the pattern off the November lows
is not complete yet.
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