Monday, November 29, 2010

S&P Futures: Daily Wrap Up for November 29, 2010

Today's session continued to demonstrate sloppy price action. Today's decline below w(a) blue (1174.75) forces an adjustment to the previous wave labeling whereas w.b circle is still unfolding. Unfortunately I can't determine if w.4 is unfolding as a triangle as the proposed chart indicates or if the flat interpretation will prevail. Until the wave structure clearly identifies the operative wave count, both interpretations remain valid. As a reminder, either interpretation eventually leads to a new recovery high above 1224.75.

There is one uncertainty that I am watching, i.e. should price decline below 1171, odds are that a much larger decline would ensue and my wave labeling is wrong.

Here's the market's position at the close:

Cyclic Momentum: Weekly is bearish but not OS. Daily is neutral. 60 min. is bullish, approaching OB.

Pattern: Either a triangle or flat correction for w.4

Time: No analysis made.

Trade Strategy: Remain flat until w.4 wave pattern becomes clearer.


Best of Trading

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