Friday, July 20, 2012
Elliott Wave Update ~ 20 July 2012
A break of 1357 would likely confirm that Minor 2's double zigzag
pattern is complete. This is where wave i of (c) price peak resides.
S&P 500 Support levels
- Daily chart shows 100 Day SMA and Golden ratio near 1358 - 1359 level.
- Price holding on to the above support levels may save bulls from a bigger fall and an up move towards 1390 levels is also possible.
- Price breaking the above mentioned levels can take SPX towards the cloud of Four hour chart which has managed to stop the falls till now. For bears a bigger fall is possible if the cloud breaks.
Friday, July 20, 2012
4 Waves
The market finally corrected today and now we have 4 clear waves on the chart. So we could (and should) see a 5th wave materialize early next week to complete this wave from the 1325 low. One thing to keep in mind is that w1 was 32.5 points and w3 was 35 points. So a 5th wave would have to be more than 32.5 points going by wave theory. If we add 32.5 points to the low for the day (potentially the low for w4) then we get at least 1395, so early next week should be fun if the 5 wave move completes. Now, there have been recent 5th wave failures so anything can happen next week, but this is all about odds.
Long Term Portfolio: 100% Long
Short Term Trading Strategy: Shorting intraday extremes, closing same day
Have a great weekend!
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