US indices analysis update

EURUSD Elliott Wave Analysis
May 1, 2013
US indices keep bullish trend intact
May 12, 2013

US indices have staged another upward move from April 22nd trying to make new all time highs. The corrective decline that happened before this upward move, tested the intermediate support levels giving an even bigger importance to those levels. However only S&P managed to make marginal new all time highs, but most other indices did not have enough power to test their recent highs. Although the patterns in most indices and ETF’s are overlapping when it comes to downside potential, the form of the decline with and lower highs implies declining power from the buy side.

TNA

 IWM

The rise from past November is clearly finding it hard to continue as it has most probably finished 5 waves up and need to make a correction. Top formations take time to complete whereas bottom formations usually are spikes.

dow60m

DOW as shown above did not manage to make new all time highs. However the short term support still holds and so does the important support level at 14400. On the other hand, S&P as shown below made marginal new high but reversed and fell below short term support.

spx60M

Next support level is found at the lower Keltner channel at 1578. Again here it is important for the longer term trend to remain bullish, prices to hold above the 1540-35 area. Another test of that area will most probably will be the one that breaks this level and opens the road for prices to reach 1470-90 area.

As always, thank you for taking the time to read my new post.

PS. Due to EASTER holiday vacations I will not update the site until May 12th. All subscribers will have their subscriptions extended by one week. Thank you all for your support and don’t forget if you need any help trading these indices, contact me at admin@trading2day.com

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.