"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)

Friday, October 12, 2012

SPX - Intermediate outlook

Last month my preferred scenario for the intermediate term has not changed.
The market closes today with the biggest weekly decline in more than four months; the break of 1430 support does not worry too much if the index does not accelerate and keep 1420 level.
The current pattern looks like a sideways of minor degree (x) and could be a flat, a complex, a three or even a triangle.
In these market conditions, it is better to be underweight but ready to return long on leading stocks.
Below my preferred scenario, and the first alternate (very similar).
Have a great weekend!



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