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Saturday, November 13, 2010

Week-end Observations!!!

Roy over at the Elliott Wave Practitioner has provided a short clip on the EUR/GBP and something very interesting, some charts of Intel which he feels are very bullish at this time. After a very brief introduction, Roy also signals that he is seeing the US markets entering into a new corrective phase that could last for the next few weeks, you can view his video by Clicking here!!!
The percent of stocks on the SPX has broke down through the 20 day MA with conviction, normally this confirms a top has been put in
The Summation Index is definitely the chart of the week!!!!
The structure over the last month is eerily similar to the top back in April, complete with negative divergence, that is, the SPX making higher highs, while the Summation Index was making lower highs and in a slight downtrend. If the Summation Index starts to explode to the downside we would have confirmation of a new downtrend in place. Also important to notice that if we do start a new downtrend now, we would also have a larger degree negative divergence, a sign of an important top being put in now. Notice the Summation Index never did make a higher high over April's reading, but the SPX did!!!
This is an important shorter-term chart, and one I have posted a few times during this current rally because the SPX has really respected support from the 20 day moving average, again, a break below this support opens the door to the SPX starting to print lower lows.
These are still my two main options, the SPX going into a sideways range over the next month or so in a large degree 4th wave with new highs to come afterwards, or the start of a new downtrend which at this point I have no prefered count because of the number of different ways the longer-term SPX can be labeled. It could be another corrective structure, or the start of something even bigger. For now since the forest is foggy it is best to watch the trees and deal with the longer-term as things clear-up.

***BREAKING NEWS!!!!********

2 comments:

  1. Indicators are more convincing than Roy.

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  2. Agree that the McClellan is the chart of the week. Even though the $SPX didn't break the MA20, can't help but notice that the $SPX Williams %R broke down through -50. The momentum/trending indicator criteria that I utilize have already signalled to Buy the USD and Sell the Euro & Yen. Am real interested to see how you envision this downleg's outcome...Jordan

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