May 2011 High to August 2011 Low, SPY has traced a a-b-c zig-zag pattern.
A corrective wave.
Having said that some technalysts are also suggesting a Wedge formation price action from Aug
low to now will bring prices lower bearing out what the fundamentalists are saying as well.
Nothing at the moment, in fact everything at the moment is pointing the SPY compass south.
I like to however, throw out a contrarian alternative technical view. Working on an Elliot count that suggest Wave 4 termination in Aug2011 when it hit the 200MA on the weekly chart. Terminating with it the corrective Wave 4's "a-b-c" wave whose declined started in May2011, the peak of Wave 3.
Incidentally, the Wave 4 in this scenario besides intersecting with the 200days weekly MA, it also coincide with the 38.2% fib level.
Which also coincide with the Europes's EWG[Germany's DAX] and Asia's EWY [Korean's KOSPI] 38.2% correction just few days ago.
If this is the case we are still in the bull leg of the Bigger BEAR rally.
via StockCharts.com
No comments:
Post a Comment