"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)

Thursday, December 27, 2012

SPX - Index close to the "Cliff"

The constant "come up and down" of the last month could be finished; with the break down of the rising channel , upside potential seems compromised.
The market is not yet fully reflects a solution on the Fiscal Cliff, so if there was not a decent one, stock indexes may fall, but if there was very good one, they may rocket.
For me the last upward wave is one of the the darkest corrective pattern in recent years (I have not yet found a reasonable Elliott wave count...) ;
from a few days, it seems to prevail the alternative scenario (top reversal wave w  on December 19) , that would be a confirmation of a decisive and massive break-down of 1410-1412 area.
Utmost caution!
Have a great trading day...with care!!!


PS: sorry, the first chart was changed after 5 minutes from the post because it contained an error label.

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