• 322 days Will The ECB Continue To Hike Rates?
  • 322 days Forbes: Aramco Remains Largest Company In The Middle East
  • 324 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 723 days Could Crypto Overtake Traditional Investment?
  • 728 days Americans Still Quitting Jobs At Record Pace
  • 730 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 733 days Is The Dollar Too Strong?
  • 734 days Big Tech Disappoints Investors on Earnings Calls
  • 734 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 736 days China Is Quietly Trying To Distance Itself From Russia
  • 736 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 740 days Crypto Investors Won Big In 2021
  • 741 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 741 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 744 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 744 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 747 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 748 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 748 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 750 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

SPX: Follow Up of the Short Term EWP

Today I don't have much to say.

During this week I have been discussing my preferred short-term scenario so I will keep it short.

The "foundation" of my short-term bearish bias is justified by three technical reasons:

  1. A complete 5 wave up leg sequence (from September 5)
  2. Weakening of the McClellan Oscillator.
  3. Initial reversal of daily momentum indicators from extreme overbought readings.

The short-term internal structure, despite not being impulsive, hence apparently it could just belong to a shallow pullback pattern, is not being aggressively bought. This is a sign of weariness. It seems that SPX is involved in a short-term holding pattern maybe by the action of the OPEX players.

So this is a waiting game, since the pattern unfolded by price still favors the bulls until we have a lower low < 1456 and we see increasing selling pressure.

Yesterday's price rebounded as expected but with an overlapping internal structure therefore we only got a doubtful Expanded Ending Diagonal. But if the down leg becomes impulsive then the odds that the short-term trend is resuming its path to the down side will substantially increase:

SPX 5-Minute Chart
Larger Image

If I am right and the June up leg is over then why we should not expect a "logical" 0.382 retracement?

In the daily chart below I highlighted the critical price levels.

SPX Daily Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment