Sunday, February 23, 2014

MTU Weekend Ed. - Short Term Update (2/21/14 close)

We observed in Overthrow, 2014 (2/14/14) that SPX was approaching the end of a five-wave advance since its February low. Indeed, stocks pulled back from their mid-week high this past week (Chart 1).  Potential nearby support levels are MA50 (currently around 1814), 1801-1806 and 1790 (Chart 2).


If additional wave [c] pullback does materialize next week, we could be looking at a (weak) inverse head-and-shoulders pattern which theoretically points to the mid-1900s.   That level also coincides with a equal-price ABC upswing with respect to the October 2013 low, and should adequately satisfy the requirement of an overthrow (Chart 3).  Whether SPX can get that high remains to be seen.





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