"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, February 26, 2013

SPX - Correction is confirmed

The break-down of 1495 confirms the prospected scenario a few days ago: Febraury 19 began a bearish corrective wave.
With the rebound to 78.6% Fibonacci's retracement, I discarded the idea that we were in a zig-zag pattern [a]-[b]-[c] , so in order of priority, the first two possibilities are:
> A three, single or double,  [w]-[x]-[y] + [x]-[z] (preferred count); in this case we could be in [y] wave, even if the downward acceleration of final session doesn't convince me;
> A bearish impulse wave [1]-[2]-[3]-[4]-[5] (first alternate count), that involves a deep correction (and even the hypothesis that February 19 is the top of the tops).
I stay outside.

Have a great trading day...with care!


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