"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, November 20, 2012

SPX - Nice rebound or new uptrend?

Stocks rose sharply on upbeat housing data and hopes on fiscal cliff, but volume falls (Investors.com).
With this rise increases the odds for my preferred scenario described in yesterday's post; Friday, November 16th, might have finished the correction and started a new uptrend of intermediate degree, with wave [1] completed or nearing completion, but unfortunately lacks the confirmation of volume.
It is necessary a "Follow Through Day" but it may difficult to occur this week due to normally lighter-volume trading that surrounds the Thanksgiving holiday.
The new first alternate scenario involves that this is a wave [a] of wave Alt: 3 so the correction is not yet over.
I'm waiting for a good wave [2] pattern and I continue to seek the Leaders that are finding support and building sound bases during the downtrend, but this time the search is difficult, and this is not a good sign...
Meanwhile, cautious day-trading on ES.
Have a great trading day...with care!!!


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