"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, April 23, 2013

SPX - Bounce in progress

To highlight the difficulties of trading even in intraday time span, it is enough to see that in yesterday's opening session was broken upwards a H & S pattern, immediately denied with a quick down move to capture the stops of the day-traders.
Preferred scenario: the wave c is ending thus the wave [a]/[w] finishes with an a-b-c zig-zag pattern, then downward wave [b]/[x] will start.
First alternate scenario: we are a degree above because it is the wave Alt: 2 that is ending.
Although both scenarios are bearish it is not yet time to trade; there isn't a clear pattern setup, unless the market does not build a five wave pattern (i)-(ii)-(iii)-(iv)-(v) of wave c that ends @ 1574, where I might consider a short.
 
Have a great trading day...with care!
 
ElwaveSurfer
 

 
 

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