SPX: Follow Up of the Short Term EWP

By: TheWaveTrading | Mon, Jan 7, 2013
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Just a brief update as there is no change in my short-term scenario:

"As I mentioned last Friday in my opinion from the November 16 low price is unfolding a Double Zig Zag which is not complete yet as I believe that price is now involved in the final stages of the wave (A) of the second Zig Zag. Once the assumed wave (A) is in place I expect a shallow pullback wave (B) with a target in the range 1444 - 1430 (20 dma), which will be followed by the last wave (Y) up. If the pending wave (Y) substantially breaches the September high and above all the following pullback is corrective then we will know that the Flat option is no longer valid, instead price should be involved in one of the two Ending Diagonal options discussed above, in such a case price is not expected to breach the 50 d ma = 1412 until one of the two Ending Diagonal options is done (Assuming that the ending patterns are confirmed by the price)"

Despite bears still have not been able to break down the short term pivot support at 1455.53 odds are very large that the wave (A) of the second Zig Zag off the November low has been established at last Friday's hod.

SPX Daily Chart
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Tomorrow during the Globex session bears have the opportunity to confirm a potential H&S that would confirm the kick off of the expected corrective wave (B) pullback.

ES 30-Minute Chart
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Author: TheWaveTrading


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