Tracking Mr. Market's Next Move
In the E-mini S&P 500 futures, this weekend we suggested the zone between 1346 and 1354 on ElliottWaveTrader -- and on Thursday the E-minis visited that that area (blue box on the chart below). While our ideal target level did not hold, the S&P still reversed from inside that blue box. The question now is: Is the S&P on its way to 1400 or higher?
As you can see on the 60-minute chart, I have the bearish count represented at this time, but I have a number of issues with adopting this. First, the moving average convergence/divergence line does not look as it should in order for it to truly be a third wave down. Second, the McClellan Oscillator did not demonstrate the selling strength that is indicative of a third wave down. Third, on a double-digit down day for the S&P, the CBOE Volatility Index (VIX) and the iPath S&P 500 VIX Short Term Futures (VXX) were negative. Fifth, if this were really the start of red wave 1 down in red wave (3) down, which would target the 1100 region, then this five-wave structure should ideally be targeting the 1327 level for a minimum, as that is the 0.382 Fibonacci extension of that larger pattern....289 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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