Elliott Wave TRIGGERS and TARGETS

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By: TheWaveTrading | Thu, Oct 25, 2012

Despite the "bullish" reasons I mentioned yesterday which favored an oversold bounce, price did not kick off the expected rebound.

However since bears did not take the opportunity to extend the down leg in progress towards the next obvious support at 1396 and SPX ended the day with a an inverted hammer

I maintain my short term bullish bias.

Therefore if bulls are able to regain the old support now resistance at 1422 then the bounce could reach the range 1434 - 1437.

I expect the overdue bounce a selling opportunity since price should carry out at least one more down leg, which could complete the Double Zig Zag off the September 14 high.

I add this scenario to the Ending Diagonal option in the daily chart below (Black Count).

If the wave (B) rebound materializes then once it is in place we will have a potential extension target for the pending wave (C) down.

http://www.safehaven.com/article/27445/spx-follow-up-of-the-short-term-ewp