• 340 days Will The ECB Continue To Hike Rates?
  • 340 days Forbes: Aramco Remains Largest Company In The Middle East
  • 342 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 742 days Could Crypto Overtake Traditional Investment?
  • 746 days Americans Still Quitting Jobs At Record Pace
  • 748 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 751 days Is The Dollar Too Strong?
  • 752 days Big Tech Disappoints Investors on Earnings Calls
  • 753 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 754 days China Is Quietly Trying To Distance Itself From Russia
  • 755 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 758 days Crypto Investors Won Big In 2021
  • 759 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 760 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 762 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 762 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 765 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 766 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 766 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 768 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

SPX: Follow Up of the Short Term EWP


Yesterday SPX breached the support located at 1626.74 but ended the day in a positive note leaving in the daily chart a bullish Hammer candlestick which is suggesting for today a likely follow through to the upside (But what is important is the eod print). Bulls also have in their favour the always-bullish Tuesday.

This is all I can say for the Bulls' side.

In the mean time Bears are maintaining the upperhand:

  • From the May 22 high ===> Lower high/lower low.
  • The down leg from Friday's hod is not impulsive in addition the bounce off yesterday's lod is clearly corrective ===> The EWP cannot be considered over.

  • In addition TRIN is in overbought territory (Usually the bottom of a pattern coincides with selling exhaustion)

TRIN Chart

I maintain unchanged my preferred scenario, which implies:

  • Price has concluded the up leg from the April 18 low but not the advance from the November lows.

  • If this is the case price is unfolding a corrective pattern that should not endanger the November uptrend.

Therefore price should conclude the corrective EWP in the range 1611-1593.

The stand out # are:

  • 0.5 Retracement = 1611.61

  • 10 wma = 1611

  • 50 dma = 1602

SPX Daily Chart
Larger Image

Regarding the labelling of the corrective pullback from the May 22 high, the lack of an impulsive down leg from Friday's hod has invalidated the idea that price was unfolding the wave (Y) of a DZZ.

So if it is not a wave (Y) it has to be a wave (A) therefore maintaining the DZZ count I modify the count considering that last Friday price concluded a Triangle wave (X), in which case now price is unfolding the wave (B) of the second Zig Zag. The wave (B) should not breach the extension of the upper trend line of the Triangle. The following the wave (Y) down has an equality extension target at 1608.

SPX 15-Minute Chart
Larger Image

As I motioned in the weekly update barring a huge bullish reaction to next Friday's NFP release it seems more probable that price should unfold an "holding" pattern until the June 19 FOMC policy update.


Back to homepage

Leave a comment

Leave a comment