It looks like someone linked you here to our printer friendly page. Please make sure you go Back to Safehaven.com for more great articles just like this one!

SPX: Follow Up of the Short Term EWP

By: TheWaveTrading | Monday, January 7, 2013

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the September high and above all the following pullback is corrective then we will know that the Flat option is no longer valid, instead price should be involved in one of the two Ending Diagonal options discussed above, in such a case price is not expected to breach the 50 d ma = 1412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
Larger Image

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
Larger Image

 

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.

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.

Copyright 2011-2014 TheWaveTrading