SPX: Follow Up of the Short Term
I HAVE UNDERSTIMATED THE SCENARIO OF A DEEPER CORRECTION Pray to The God for taking support as 1597 to 1608
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Globle: Short term analysis
In my opinion the top of the up leg from the November lows is in place. We will have the absolute confirmation when price establishes a lower high. Below I show you the SPX weekly momentum indicators where we can see that the RSI has breached the trend line support in force since the November 16 low. The next intermediate buy signal usually should occur when the RSI and the Stochastic retest the 50 line. I rule out a major reversal, instead I maintain the scenario of a retracement of the advance from the November lows. As I discussed last Friday the major reasons that suggest that price has not established a major top are: The up leg from the November lows has unfolded a corrective 7-wave structure ===> A corrective EWP cannot establish a major Top. The current pullback is also unfolding a corrective pattern ===> The intermediate trend remains up. Retails investors are extremely bearish (I have never seen a major top with an extremely low AAII Bull ratio) Regarding the potential target, at the moment, since we are in the initial stage of a corrective pattern I can only say that price should establish a [...]
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Analysis on S&P 500 and Nasdaq for this week…
I MAINTAIN UNCHANGED THE CALL OF A TEMPORARY TOP Therefore my strategy is to sell the rip. My road map can be seen in the SPX daily chart below: The main themes are: The rally from the November lows has unfolded a corrective pattern = Triple Zig Zag ===> Therefore we don’t have yet the top of the wave (X) from the 2009 lows. Neither we do have yet the absolute confirmation that price has began a corrective phase until bears achieve to break through the support layer located in the range 1538-1531 Once the support layer 1538-1531 is breached I expect that this pullback will find a bottom in the range 1485-1431 Before moving on with the weekly technical update I have to bring forward the following technical issues that will affect the progress of the expected pullback: The internal structure of the current down side price action is clearly corrective therefore every single impulsive sequence to the down side (waves C) can be the candidate to establish the end of the correction or at least it will open the door to large counter trend rebounds. Bears also have an issue with an already oversold McClellan oscillator and with [...]
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Time to review the SP500 with some…
I will update to night weekly update of world markets. Just watch S&O 500 Candle stick chart
READ MOREDow Jones and S&P 500 have been started to fall down
“NEVER BEFORE HAVE YOU HAVE SEEN THIS PERFECTION OF CHART ANALYSIS“ As expected Dow Jones and S&P 500 have been started to fall down. Let’s start by looking Nifty future…, Yes we are waiting for long “Expected time is 2-3day for long” Click here. Yes, You can short-sell Nifty for 5928-5947 small points.
READ MOREWeekly Technical Analysis – Monday, Feb 3, 2013
My short-term scenario has proven to be wishful thinking. I was looking for a potential Zig Zag down instead bulls have once again aborted a pullback that in my opinion has been delayed but not removed from a pending outcome. Regarding the long-term count I maintain the scenario of a potential Ending Diagonal. If it pan out it will complete the Double Zig Zag wave (X) off the March 2009 low establishing a major top. But instead of a expecting a larger subdivision of the wave (III) maybe price is approaching the end of this wave. If this is the case then once the wave (III) is in place the next down leg, in order to be considered the wave (IV) of the Ending Diagonal, it will have to overlap below the peak of the wave (I). The potential target for the wave (IV) could located in the range 1463.76 – 1435.50. In addition if the Dow is unfolding the same ending pattern, then the wave (III) cannot exceed above 14089.64 therefore there is not much more upside left in order to maintain valid this option. , .
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