Saturday, November 23, 2013

MTU Weekend Ed. - Potential Pullback (11/22/13 close)

We expect to see a pull back in SP500 toward 1650 area before long. The new record high of 1804.84 this past week once again hugs the longer term resistance line “responsible” for the 2010, 2011 and 2013 corrections (Chart 1).

A small-degree five wave advance from the November low is ending (Chart 2), around the projected area of an inverse head-and-shoulders pattern at a larger degree (Chart 3).  Also note the two unfilled gaps around 1785 and 1745 during the recent rally.



From a bearish perspective, the near term price actions also complete a double three (double zigzag) structure off the June low (Chart 4), which in turn offers to complete a larger double three structure since the 2009 bottom in stocks (Chart 5).



While long term bullish counts (such as those discussed in our weekly commentaries) remain on the table, many of them also point to a short term pullback.

blog comments powered by Disqus