Bulls are now trapped in S&P.

Elliott wave analysis for S&P500
August 14, 2013
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August 19, 2013

With a false break out pattern in the SPX and prices breaking the upward sloping channel, a downward correction was imminent. Late July we notified our subscribers and our website visitors that had more to lose at the all time high price levels and should have raised their trailing stops in order to exit in a timely manner. A few days ago we also wrote a free analysis on DOW that we were expecting at least 15100-15200 to be reached. Trading2day subscribers saw us sell short SPX at 1698-1688-84 only to close positions at 1665-1653. This downward move in equities is according to our analysis very important. This could be the start of a bigger correction as wave relationships imply end of wave patterns that come a long way.

spxD

Support is found at 1653,1634 and at 1616. Falling beneath the 61,8% Fibonacci retracement will put the bigger trend in danger. In the short-term we can expect a small upward bounce on Monday and early Tuesday, but selling pressures are expected to persist. We are bearish and will not try to buy the dip.

spxweekly

We expect prices to move lower still to test the weekly 20 period MA. Important low is the June low at 1560. At this low we believe the longer term trend is challenged. If broken we could clearly see the end of the and higher lows pattern that started at 1123.

spxweek

If my bearish feeling gets confirmed by a break of 1560, we can expect prices to move towards 1450-1375. More updates and analysis for our Trading2day subscribers. Analysis that adds value to your trading. As always, thank you for taking the time to read my new post.

A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.

The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.

Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.

HigherHighsLowerLows

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.