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

  • 8 hours Why Are Investors Overlooking Gold Stocks?
  • 9 hours The App That Democratized Trading Is Now Worth $5B
  • 10 hours Super-Cycles: Why Gold Is Set For A Breakout
  • 11 hours U.S. Sanctions Russia For Election Meddling And Cyberattacks
  • 12 hours Snap Shares Tank Over ‘Slap Rihanna’ Campaign
  • 13 hours How Low Can Bitcoin Go?
  • 14 hours Amazon’s Japan HQ Raided In Anti-Monopoly Push
  • 16 hours Is Barrick Gold Close To Finding A Bottom?
  • 1 day Morgan Stanley’s Top 10 Short-Term Stock Picks
  • 1 day China: The Land Of The Ultra-Rich
  • 1 day Alibaba Soars On Reports Of China Listing
  • 1 day What Killed Toys ‘R’ Us?
  • 1 day SEC And IRS Take An Aggressive Stance On Cryptocurrencies
  • 2 days Bears And Bulls Face Off In Gold Markets
  • 2 days Bitcoin Is Winning Over The Housing Market
  • 2 days Markets Slide Sideways As Trade War Fears Linger
  • 2 days Why Aren’t Millennials Investing?
  • 2 days Bitcoin And Banking: The Next Mobile Payment Revolution
  • 2 days SEC Cracks Down On Silicon Valley’s “Disruptive Tech”
  • 2 days Wyoming Eliminates All Taxation On Gold And Silver
Alibaba Soars On Reports Of China Listing

Alibaba Soars On Reports Of China Listing

Chinese e-commerce giant Alibaba saw…



My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on…

More Info

SP500: The Magnitude of a Trend Line

The lower high established at the November peak can be the first step of a trend reversal.

A new bearish cycle will be confirmed if price breaches the August low establishing a lower high.

If this is the case the risk of a retracement towards the range 1574 - 1553 would substantially increase.

In the mean time as long as SP 500 does not reclaim the 10 mma which today stands at 2041 the trend is pointing down.

S&P500 Monthly Chart
Larger Image

A trend line that connects the October 2014 and the August 2015 lows is probably the line in the sand. If the trend line is breached we could make the case that it is the neckline of a Head and Shoulder. The measured target is located at 1611.

S&P500 Monthly Chart 2
Larger Image

In the weekly time frame the Head and Shoulder can be seen clearly.

S&P500 Weekly Chart
Larger Image

If the neckline holds SP 500 could be carving out a Bullish or Bearish Triangle:

  • Bearish Triangle:

S&P500 Bearish Triangle
Larger Image

  • Bullish Triangle:

S&P500 Bullish Triangle
Larger Image

Elliott Wave wise the Triangles scenarios can only pan out if the decline from the November peak unfolds a 3-wave down leg.

So far, in my opinion, from the November "lower" high we can count a 3-wave down leg in progress. The wave 3 is probably not done yet

Once the wave 3 is in place if bulls are not able to reclaim the "overlap" line at 2005 odds should favor an impulsive decline which will most likely breach the neckline of the H&S opening the door to a large retracement.

S&P500 Daily Chart
Larger Image


Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter