• 16 hours Bezos’ Next Big Project Could Be Worth $100 Billion Per Year
  • 18 hours 3,600 Years Later, Climate Change Turns Mammoths Into $40M Market
  • 22 hours Tesla, Apple Claim China Is Stealing Intellectual Property
  • 24 hours EV Giants Duke It Out For Battery Dominance
  • 2 days Tech Billionaire Takes Aim At Google
  • 2 days Chinese Police Bust Largest Ever Illicit Crypto Mining Operation
  • 2 days Expect A Pullback Before Gold's Next Major Rally
  • 2 days Why Interest On Gold Matters
  • 3 days Ten Extravagant Food Items For The Wealthy Only
  • 3 days Why Saudi Arabia Won't Give Up On The Aramco IPO
  • 4 days $32 Million Crypto Heist Halts Tokyo Exchange
  • 4 days Is A Gold Selloff Looming?
  • 5 days Central Banks Are Stashing Gold And Dumping Treasuries
  • 5 days Three Cannabis Trends Flying Under Investors’ Radars
  • 6 days $1.3 Billion In Cocaine Found On JPMorgan Vessel
  • 6 days Amazon Teams Up With Lady Gaga To Win Over Generation Z
  • 6 days Dollar Falls As Powell Teases Rate Cuts
  • 6 days Will The World's First Trillion Dollar Company Ever Bounce Back?
  • 7 days Many Americans Will Never Stop Working
  • 7 days Mozilla vs DarkMatter: The Cyber Espionage End Game
Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

UPRO: Bullish Setup

Entry Date: 05/29/2014; Long 100.37; Stop: 98.35; Target: 107.90 +/-

Reason: Price should have completed a Triangle

In my last update of SPX on May 4 I discussed three potential short term Elliott Wave patterns. Today the Triangle option is the frontrunner.

It is probable that at Friday's lod price has concluded the bullish pattern. If this is the case the structure of the advance from the April 11 low is suggesting that price has concluded a Triangle wave (B) hence the pending thrust higher is a wave (Y) that will complete the Double Zig Zag and in addition it should conclude an Ending Diagonal which began to be formed at the October 2013 low.

If the Triangle pans out the theoretical target of the pending wave (Y) is located at 107.90 +/-.

UPRO 60-Minute Chart
Larger Image

The positive clue is that last Friday's lod was established at the 200 hr ma.

The caveat, as we can see in the SPX 15 min chart below, is that from the lod the rebound does not look impulsive unless price is forming a Leading Diagonal (Keep in mind that a wave C has to unfold an impulsive sequence)<./p>

For this reason I have decided to lower my stop below the lower contracting trend line, in case the wave (e) is not in place yet.

SPX 15-Minute Chart
Larger Image

If the kickoff of the assumed wave (Y) is solved with an impulsive sequence the daily Hammer candlestick with the bottom of the tail at the 20 dma is strongly suggesting that a breakout would be imminent.

UPRO Daily Chart
Larger Image

In addition since a Triangle occurs prior to the final actionary wave of a larger degree pattern it would strongly strengthen the scenario of the Ending Diagonal since the pending thrust higher would conclude the last wave (V).

UPRO Daily Ending Diagonal Chart
Larger Image


Back to homepage

Leave a comment

Leave a comment