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Sunday, November 22, 2015 9:11:28 AM
SP 500: BULLS HAVE REGAINED THE UPPER HAND
By The wave trading
* November 21, 2015
In spite of the set up for further weakness last week´s decline was abruptly halted at the first key support (2020). Price has recovered most of the loss neutralizing the prospects of a larger pullback. Bull have regained the upper hand
A short-term pause is probable but the bias is once again bullish
Monthly time frame
• Potential long-term count: Double Zig Zag (DZZ)
• The second wave (A), which began at the March 2009 low is most likely not in place yet
• If we connect the March 2000 high with the May high, SP 500 could be carving out a Rising Wedge with limited upside for the assumed second wave (A) of the DZZ count.
• If we zoom in we can see that above the May high the next resistance is located at the suggested trend line which coincides with the upper Bollinger Band in the area of 2160 (Usually a move above the upper Bollinger Band is not sustainable)
• With four trading days left to end the month of November it seems probable that the monthly candlestick will be either a Spinning Top or a Hanging Man (Both candlesticks have potential bearish connotations)
• The support is located at the 10 mma = 2058
• I don´t expect a test of the 10 mma during what is left of November.
Weekly time frame
• Bears have once again failed. A Shooting Star followed by a Black Marubozu should have given the edge to a larger pullback but buyer stepped in aggressively negating the bearish setup with a uber bullish Piercing Line.
• The support is at the 50 wma = 2061
• The key resistance areas below the All Time HIgh are located at the weekly gap = 2099,20 then 2116.48 (November peak)
• Weekly Oscillators are aligned with the bullish bias. No reversal is in the horizon as long as the RSI breaches the trend line and the MACD reverse the bullish signal cross
http://www.thewavetrading.com/sp-500-bulls-are-regaining-the-upper-hand/
• George.
Click on "In reply to", for Authors past commentaries.
By The wave trading
* November 21, 2015
In spite of the set up for further weakness last week´s decline was abruptly halted at the first key support (2020). Price has recovered most of the loss neutralizing the prospects of a larger pullback. Bull have regained the upper hand
A short-term pause is probable but the bias is once again bullish
Monthly time frame
• Potential long-term count: Double Zig Zag (DZZ)
• The second wave (A), which began at the March 2009 low is most likely not in place yet
• If we connect the March 2000 high with the May high, SP 500 could be carving out a Rising Wedge with limited upside for the assumed second wave (A) of the DZZ count.
• If we zoom in we can see that above the May high the next resistance is located at the suggested trend line which coincides with the upper Bollinger Band in the area of 2160 (Usually a move above the upper Bollinger Band is not sustainable)
• With four trading days left to end the month of November it seems probable that the monthly candlestick will be either a Spinning Top or a Hanging Man (Both candlesticks have potential bearish connotations)
• The support is located at the 10 mma = 2058
• I don´t expect a test of the 10 mma during what is left of November.
Weekly time frame
• Bears have once again failed. A Shooting Star followed by a Black Marubozu should have given the edge to a larger pullback but buyer stepped in aggressively negating the bearish setup with a uber bullish Piercing Line.
• The support is at the 50 wma = 2061
• The key resistance areas below the All Time HIgh are located at the weekly gap = 2099,20 then 2116.48 (November peak)
• Weekly Oscillators are aligned with the bullish bias. No reversal is in the horizon as long as the RSI breaches the trend line and the MACD reverse the bullish signal cross
http://www.thewavetrading.com/sp-500-bulls-are-regaining-the-upper-hand/
• George.
Click on "In reply to", for Authors past commentaries.
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• gtsourdinis
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