"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, November 23, 2012

SPX - A pullback would be useful

The index is dancing on the 50% Fibonacci's retracement, and, in terms of volume, is visible the effect of  the short week.
Preferred scenario: the market is in wave b of an irregular Elliott wave pattern a-b-c of wave [2] ; I'm waiting for a downward c wave close to 1377 to 1372.
1° Alternate scenario; the wave of minuette degree is not wave [2] but wave [b] , so the underlying trend is yet bearish.
2° Alternate scenario; the market is already on the wave [3] , and is possible a retracement in wave 2.

Therefore, the common factor in all 3 scenarios is a pullback, but care must be taken because the market is in time zone of Follow Through Day.

Have a great trading day...with care!

ElwaveSurfer



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