"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)

Tuesday, October 23, 2012

SPX - Dangerous situation or great opportunity

The yesterday's low drilled that of October 12 so it's necessary a new count.
Visually, the SPX chart shows a sideways pattern well alligned which generally has potential bullish.
The real problem is the Elliott wave counting, because the last bullish wave and the last bearish look like two five wave patterns and this would only be possible if the first impulse is the final wave of a flat and the second impulse is the initial wave of a zig-zag or a downward impulse.
Or one of the two impulse counts is wrong.
The situation is very uncertain, the market could offer a wonderful buy opportunity or hide a bear trap or could be near a cliff.
Too much risk, I'm out and look.
Have a great trading day...with care!!!


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