• 209 days Could Crypto Overtake Traditional Investment?
  • 214 days Americans Still Quitting Jobs At Record Pace
  • 216 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 219 days Is The Dollar Too Strong?
  • 219 days Big Tech Disappoints Investors on Earnings Calls
  • 220 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 222 days China Is Quietly Trying To Distance Itself From Russia
  • 222 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 226 days Crypto Investors Won Big In 2021
  • 226 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 227 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 229 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 230 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 233 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 234 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 234 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 236 days Are NFTs About To Take Over Gaming?
  • 237 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 240 days What’s Causing Inflation In The United States?
  • 241 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

SPX: Follow Up of the Short Term EWP

THE MCCLELLAN OSCILLATOR IS THRUSTING ON

The McClellan Oscillator with the thrust above the zero line is confirming that the SPX corrective pattern from the November lows has began a new up leg.

NYSE McClellan OscilatorChart

As I mentioned yesterdays going forward a strong McClellan Oscillator will most likely trigger a buy signal of the Summation Index.

NYSE Summation Index Chart

If this is the case the EWP from the November lows will extend considerably higher and bulls will enjoy several weeks/months of more upside. In addition since the up leg off the November 16 low is corrective it will not complete the assumed wave (X) from the 2009 lows, therefore once this up leg is over the following pullback eventually it will be bought again.

Regarding the long-term count, I maintain the wave (X) option but I don't have a confident count. At the moment I am looking at the following idea, in which case price would be now unfolding the wave (I) of a large Ending Diagonal:

Dow Weekly Triple Zig Zag Chart
Larger Image

Lets move on to the current up leg:

In my opinion the corrective EW pattern from the November lows, has morphed into a Triple Zig Zag. This means that from the February 26 low price will unfold another Zig Zag up.

Therefore we are now in the wave (A) of an ABC sequence.

Reminder: Once again we are dealing with a corrective up leg hence it will cause uncertainties regarding the correct location of price within the EWP.

Dow Daily Chart
Larger Image

I am not sure if at yesterday's hod the wave (A) as been completed since we did not have a spike of short-term breadth extremes (TRIN, TICK) hence having the eod above the BB is not a warranty of an exhaustion move.

If the wave (A) is in place the assumed wave (B) pullback will most likely be a shallow one.

Regarding the short-term price action a Double Zig Zag can be considered completed but without a retracement in the range 1521-1514 (Blue Count) I cannot rule out an extension higher (Black Count).

Dow 15-Minute Chart
Larger Image

Probably TLT and VIX will give clues regarding the feasibility of the SPX wave (B) pullback.

  • TLT should close Monday's gap down at 118.27, within a likely lengthy wave (B) pattern:

TLT Daily Chart
Larger Image

  • VIX so far is diverging from SPX (No lower low) and it could be forming a bullish falling wedge:

VIX 60-Minute Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment