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Jul 20, 2010
SPX 500 Elliott Wave update
Definitely the short term picture looks bullish, even with the weak attempt to break the channel line. Anyway, this week is going to be interesting because we've got an impulse five up, which I labeled as "A" without any important resistance overcame. A short "a,b,c" correction is expected, which perhaps will try to test the previous 07/01 low. I think the price will calm down around 1035 before the next attempt to break the upper channel line.
chart updated 21/07
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2 comments:
It was corrective up yesterday and impulsive decline this morning with another positive divergent and now, corrective rising to close gap.
It is down wave still.
Interesting to know your system--as "confirming" short after bouncing off near oversold in sentiment.
"It was corrective up yesterday" - I think it was entire impulse up yesterday. Based on completed pattern in 7/1/10 low, and wave count.
"impulsive decline this morning with another positive divergent and now, corrective rising to close gap" -If you are scalper, and watch lower time frames (5-10 min)I can agree with you for the impulsive decline.
Usually I take the daily base first, and try to get the "right look" if possible, and then lower time frames (1-4 hours) for wave recognition and possible counts.
"Interesting to know your system--as "confirming" short after bouncing off near oversold in sentiment."- My system is very simple and it's written at the home page bottom "MY WAY"-nothing special, but working.
The sentiment by itself is not a reliable and proper trading tool. Usually it's good to use it as add on to the main technical analysis- mainly around expected rollover points. As we know- the "sentiment" is a poll, which measures the percentage of the investors who are bullish, bearish, or neutral on the stock market for future period. It is very important to know HOW LONG is the period included in the poll- 1 week, 1 month, 1 year etc. Anyway, the sentiment changes.
The short after bouncing is not "confirmed" yet, the price may decide to resume the main long term trend. I will post an update if we have potential "C" wave of a "zig-zag".
Thanks for your comment anonymous.
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