"All human activities have three distinctive features: pattern, time and ratio - all of which observe the Fibonacci Summation Series" (R.N. Elliott - "Nature's Law - the Secret of the Universe" - 1946)

Wednesday, September 26, 2012

SPX - Hunting of "x" bottom requires caution

As expected, the market has declined; the hypothesis of triangle in wave x was correct.
Now the first 2 scenarios that I expect for the end of the x wave are as follows:
- Preferred scenario: the index reached the first Fibonacci price cluster in 1435-1434 area in mid-session today at the yellow vertical where there is a micro Fibonacci time clusters;
- First alternate count: the index falls again until 1428-1426 area where there is a second Fibonacci price cluster.
Below, it is necessary change the count.
The bad news is the pattern; the suspected downwave y started yesterday seems to have an  impulse structure, which is not possible in a complex pattern, and this element deserves careful!
Have a great trading day ... with care!!!

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