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Wednesday, April 03, 2013 9:42:50 AM
SPX: Follow Up of the Short Term EWP
By The wave trading
* Wednesday, April 3, 2013
WATCHFUL FOR AN ENDING PATTERN
The time has come to be on a look out mode for an ending pattern.
Weak breadth indicators and a mounting divergence of XLF and IWM are raising a serious warning that the rally from the November lows is approaching its end.
• The Summation Index continues to weaken.
• IWM: The pattern from the March 15 high is corrective but by violating both the 20 dma and a critical horizontal support located at the February 20 peak (Break out level) it is suggesting that it is probable that the up leg from the February 26 lod is finished.
• XLF: Here the internal structure of the pullback is still favouring another push higher but if the Triangle wave (B) pans out then the odds that price has already began a corrective phase would substantially increase.
Take notice that both IWM and XLF would be carrying out a CORRECTIVE pullback.
Lets move on to the SPX charts:
Regarding the overall scenario I maintain unchanged my preferred counts:
• Shorter-term time frame: Price is involved in establishing the top of the CORRECTIVE up leg from the November lows.
• This corrective up leg can be the wave (I) of an Ending Diagonal that will complete the wave (X) from the 2009 lows
===> Therefore once price confirms a reversal pattern the following pullback should retrace only a segment of the up leg from the November lows. At the moment lets establish a potential target range = 1485 - 1438.
Continued...Click here
George.
Click on "In reply to", for Authors past commentaries.
By The wave trading
* Wednesday, April 3, 2013
WATCHFUL FOR AN ENDING PATTERN
The time has come to be on a look out mode for an ending pattern.
Weak breadth indicators and a mounting divergence of XLF and IWM are raising a serious warning that the rally from the November lows is approaching its end.
• The Summation Index continues to weaken.
• IWM: The pattern from the March 15 high is corrective but by violating both the 20 dma and a critical horizontal support located at the February 20 peak (Break out level) it is suggesting that it is probable that the up leg from the February 26 lod is finished.
• XLF: Here the internal structure of the pullback is still favouring another push higher but if the Triangle wave (B) pans out then the odds that price has already began a corrective phase would substantially increase.
Take notice that both IWM and XLF would be carrying out a CORRECTIVE pullback.
Lets move on to the SPX charts:
Regarding the overall scenario I maintain unchanged my preferred counts:
• Shorter-term time frame: Price is involved in establishing the top of the CORRECTIVE up leg from the November lows.
• This corrective up leg can be the wave (I) of an Ending Diagonal that will complete the wave (X) from the 2009 lows
===> Therefore once price confirms a reversal pattern the following pullback should retrace only a segment of the up leg from the November lows. At the moment lets establish a potential target range = 1485 - 1438.
Continued...Click here
George.
Click on "In reply to", for Authors past commentaries.
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