"All human activities have three distinctive features: pattern, time and ratio - all of which observe the Fibonacci Summation Series" (R.N. Elliott - "Nature's Law - the Secret of the Universe" - 1946)


Friday, February 1, 2013

SPX - Possible top of minute degree in a Fibonacci time cluster.

The preferred scenario, after being weakened by the Wednesday's move, was denied from that of yesterday.
The new preferred scenario considers that occured,  on January 30,  the top of wave y , and now we are in the wave [a]/[w]  of the second wave x of a double zig-zag w-x-y-x-z  .
This count would be confirmed by an interesting Fibonacci time cluster at the top of the wave y (which unfortunately I have only seen today) between 100% (bottom wave x - bottom wave x) = red vertical line (dashed) and 261,8% (top wave w - bottom wave x) = white vertical  line (dashed).
Another confirmation is required, with the lack of new highs within a few days.
The new first alternate scenario: we are in Alt:[4] of Alt:c
Possible targets: in 1487-1486 area there is the first Fibonacci price cluster, the second is in 1481-1480 area.

The first alternate count could also end today close to 1492 (but this is a hypothesis with low probability).
However, the main trend remain bullish so, even if a top may have occured,  I don't open short position on stocks (may be in intraday ES trading).
Have a great trading day...with care!
 
ElwaveSurfer
 



 

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