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Dow and S&P Triangle Formations May Signal More Losses To Come
Written by John Rivera, Analyst
CFDTrading.com provides free news, trading resources, and market analysis to the trading community.
Last week’s update was “today’s huge rally is the bulk of a 4th wave correction. Levels to watch for a top and reversal are 9672 and 10150. Price ideally remains below 10828.” Elliott channel resistance is at 10150 (61.8%) on October 23 and 9672 (50%) on November 6. This 4th wave correction that is underway now could take the form of a triangle, so expect range conditions over the next several weeks before the next bear leg takes hold.
The 38.2% Fibo extension of 11,483 – 7,882 has proved formidable for the Dow which could lead to the index trading lower. An apparent triangle could signal a breakout lower is possible.
The S&P is virtually the same as the Dow. Expect a top and reversal near 1050 or 1107. Price remaining below 1200 keeps us confidently bearish. With regards to time, Elliott channel resistance intersects with the 50% retracement at 1050 on November 4.
If you found this analysis useful, the article continues HERE, and analyses the Nasdaq over the short and long term (Daily and 60 minute charts) at CFDtrading.com
CFDTrading.com provides free news, trading resources, and market analysis to the trading community.
Written by John Rivera, Analyst
CFDTrading.com provides free news, trading resources, and market analysis to the trading community.
Last week’s update was “today’s huge rally is the bulk of a 4th wave correction. Levels to watch for a top and reversal are 9672 and 10150. Price ideally remains below 10828.” Elliott channel resistance is at 10150 (61.8%) on October 23 and 9672 (50%) on November 6. This 4th wave correction that is underway now could take the form of a triangle, so expect range conditions over the next several weeks before the next bear leg takes hold.
The 38.2% Fibo extension of 11,483 – 7,882 has proved formidable for the Dow which could lead to the index trading lower. An apparent triangle could signal a breakout lower is possible.
The S&P is virtually the same as the Dow. Expect a top and reversal near 1050 or 1107. Price remaining below 1200 keeps us confidently bearish. With regards to time, Elliott channel resistance intersects with the 50% retracement at 1050 on November 4.
If you found this analysis useful, the article continues HERE, and analyses the Nasdaq over the short and long term (Daily and 60 minute charts) at CFDtrading.com
CFDTrading.com provides free news, trading resources, and market analysis to the trading community.