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Sunday, December 22, 2013 2:02:14 PM
Weekly Technical Analysis
By The wave trading
* Friday, December 22, 2013
THE LARGER CORRECTIVE SET UP HAS BEEN ABORTED
Despite there were plenty of technical reasons that were suggesting a larger correction bears have failed to breach the 50 dma. At the same time in spite of the persistent negative divergences a breadth thrust of the McClellan Oscillator will most likely allow the weekly stochastic of the Summation index to bottoming out and issue a multi-week buy signal. If this is the case the next sell signal will be issued once the stochastic enters the overbought territory.
Therefore going forward we will have to monitor the McClellan Oscillator since as long as it remains above the zero line bulls will remain in control.
And buying "exhaustion" will probably not occur until NYUD reaches the overbought line.
Long-Term EWP
I maintain the idea that from the March 2009 low price is unfolding a corrective advance, probably a Double Zig Zag. If this is the case the next theoretical extension target is located at 1936. As I have discussed in my previous weekly updates once the corrective pattern is completed SPX will be vulnerable for a meaningful decline, which will probably not bring into peril the long-term up trend.
The monthly candlestick, with only 6 trading days left, could end up being a Spinning Top, if this is the case odds would favour a pullback in January. As long as the 5 m ma which today stands at 1739 is not breached the up trend will not be in danger of being reversed.
If SPX is unfolding a Double Zig Zag, in my opinion, at the October 9 low price has began the last wave (5) of (Y).
If price achieves the equality extension target with the assumed wave (1), the wave (5) could top at 1910.
Continued...Click here
George.
Click on "In reply to", for Authors past commentaries.
By The wave trading
* Friday, December 22, 2013
THE LARGER CORRECTIVE SET UP HAS BEEN ABORTED
Despite there were plenty of technical reasons that were suggesting a larger correction bears have failed to breach the 50 dma. At the same time in spite of the persistent negative divergences a breadth thrust of the McClellan Oscillator will most likely allow the weekly stochastic of the Summation index to bottoming out and issue a multi-week buy signal. If this is the case the next sell signal will be issued once the stochastic enters the overbought territory.
Therefore going forward we will have to monitor the McClellan Oscillator since as long as it remains above the zero line bulls will remain in control.
And buying "exhaustion" will probably not occur until NYUD reaches the overbought line.
Long-Term EWP
I maintain the idea that from the March 2009 low price is unfolding a corrective advance, probably a Double Zig Zag. If this is the case the next theoretical extension target is located at 1936. As I have discussed in my previous weekly updates once the corrective pattern is completed SPX will be vulnerable for a meaningful decline, which will probably not bring into peril the long-term up trend.
The monthly candlestick, with only 6 trading days left, could end up being a Spinning Top, if this is the case odds would favour a pullback in January. As long as the 5 m ma which today stands at 1739 is not breached the up trend will not be in danger of being reversed.
If SPX is unfolding a Double Zig Zag, in my opinion, at the October 9 low price has began the last wave (5) of (Y).
If price achieves the equality extension target with the assumed wave (1), the wave (5) could top at 1910.
Continued...Click here
George.
Click on "In reply to", for Authors past commentaries.
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