"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, April 4, 2013

SPX - The strange pattern has bearish implications.

Yesterday I wrote: "The market shows some reluctance in the upward movement, the pattern formation is difficult to label, and the risk is the construction of a 5 wave ending diagonal. So it's needed more caution than usual".
Markets sold off aggressively on higher volume yesterday, so my preferred scenario was wrong and has been invalidated; the alternative seems to prevail.
A recount is necessary but need a clarification; it's very difficult to understand where we could be.
New preferred count: yesterday wave a is ended, and starting correction in wave b of z .
There are several alternate counts: one of these considers the hypothesis that yesterday was reached the top of the Cycle (however this counting for now has low probability).
It is better not have long positions, to stay cash and out of the market.
 Have a great trading day...with care!


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