SPX: Follow Up of the Short Term EWP

By: TheWaveTrading | Fri, Feb 22, 2013
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Given the following reasons summarized below in my opinion the odds that the up leg off the November low is done are very large. The "bearish deal" will be sealed with a lower high.

NYSE Summation Index Weekly Chart

SPX Momentum Chart
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IBEX Weekly Chart
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This weekend I will review the EWP, but I want to show you a potential H&S that has a projected target at 1.2880:

Euro Weekly Chart
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The new pivot support is at 1498, once/if it is breached there is only white space (Except the BB at 1491) until the next support at horizontal support which coincides with a rising 50 dma = 1474.51 If this area is also breached then my preferred long term count could pan out with a wave (IV) of the ED option.

SPX Daily Chart
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SPX 5-Minute Chart
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SPX 60-Minute Chart
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VIX daily Chart
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TLT Daily  Chart
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Conclusion: There are overwhelmingly reasons that are suggesting that price is involved in the initial stages of a meaningful pullback.

This weekend we have a major event risk with the Italian elections.

Enjoy the weekend.

 


 

TheWaveTrading

Author: TheWaveTrading

TheWaveTrading

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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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
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