"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 6 hours The FANG Stock Investors Should Avoid
  • 1 day Is This The Death Of The iPhone X?
  • 1 day Is London Still The Financial Capital Of The World?
  • 1 day Is Gold Staging A Comeback?
  • 1 day The $200 Million ‘Golden Parachute’ For Rupert Murdoch
  • 1 day Bitcoin’s Breakout Is Not As Bullish As it Seems
  • 1 day Farmers On Edge As Trade War Hits U.S. Grain Shipments
  • 2 days Is Silver Poised For A Massive Break Out?
  • 2 days Meet The Hedge Fund Billionaires Club
  • 2 days The Next Housing Crisis Could Be Right Around The Corner
  • 2 days Cartel's, Pirates And Corruption Cost Mexico $1.6 Billion Per Year
  • 2 days Africa’s Fastest Growing Economy
  • 2 days The Blockchain Boom Hits The Utilities Sector
  • 2 days Why Smart Money Is Selling Off Right Before The Bell
  • 3 days Tech Giants Rally Ahead Of Earnings Reports
  • 3 days Global Debt Hits 225% Of GDP
  • 3 days The World’s First Trillionaire Will Be A Space Miner
  • 3 days How Student Debt Could Cause The Next Real Estate Crisis
  • 3 days This $550 Billion Industry Is Betting On Bitcoin
  • 3 days One Commodity Set To Soar On Russian Sanctions
3 Stocks to Watch This Earnings Season

3 Stocks to Watch This Earnings Season

Stocks began Friday with a…

The FANG Stock Investors Should Avoid

The FANG Stock Investors Should Avoid

Thanks to a private data…

One Commodity Set To Soar On Russian Sanctions

One Commodity Set To Soar On Russian Sanctions

The recent sanctions on Russia's…

SPX: Follow Up of the Short Term EWP

AMBIGUITY

  • The outcome of the pattern is uncertain
  • Momentum and breadth indicators are suggesting that price has not completed the advance form the November lows

It is still possible but it looks less likely the scenario that calls for a temporary top at the April 11 high ===> Zig Zag in progress.

If this pattern is the correct one, the current up leg is a bearish wave (B), which will be followed by an impulsive decline (wave C).

Therefore I place 2 big question marks both at the April 18 lod and at yesterday's hod.

SPX Daily Chart
Larger Image

Yesterday I discussed several options both bullish and bearish that can play out if bears are not able to achieve an impulsive decline.

Today I add a new one, which calls for an Ending Diagonal wave (Y).

SPX Daily Chart 2
Larger Image

Usually in a wave (B) we should not see a breadth thrust, nor the RSI above the 50 line, a MACD bullish cross over and Summation buy signal.

  • McClellan Oscillator has the stochastic overbought but no sell signal yet. Recall that as long as the oscillator does not cross the zero line bearish set ups are not viable

NYSE McClellan Oscillator Chart

  • The Summation Index has issued a "buy signal" by crossing above its 10 dma. The solidity of this bullish signal will depend upon if the RSI crosses the 50 line.

NYSE Summation Index Chart

  • The MACD is crossing over; the Stochastic is not overbought and the RSI is above the 50 line.

SPX Momentum Chart
Larger Image

Nor VIX is suggesting that it is unfolding a bullish pattern, at least not yet. I have already discussed that the "fear index" could be forming a bullish falling wedge. If this is the case this pattern still needs a lower low.

VIX Weekly Chart
Larger Image

Regarding the EW labelling of the current up leg, it unquestionably corrective but it not clear that it is over yet. Either way keep in mind that if the following pullback is corrective eventually it will be bought

I have two options, depending if 1577.90 holds:

1. Ending Diagonal wave (Y)

SPX 15-Minute Chart
Larger Image

2. Double Zig Zag is over

SPX 15-Minute Double Zig Zag Chart
Larger Image

Have a great weekend.

 

Back to homepage

Leave a comment

Leave a comment