15 Nov 2013

As prices continue higher, the less likely it is that we are seeing an ABC pattern forming for a B wave.  Our angles continue to be a magnet for prices and it seems we are looking for higher highs to establish the next resistance just above 1800 level on the SPX.

Main-Trend: DOWN (Confirmed)
Short-Term: UP

The discrepancies to the main-trend lies with volatility and even when confirmed it is still in overbought territory.  This is typical behaviour of price volatility vs. indicator.  The only resolution to this is a neg. divergence or an exit out of overbought range.

 

 

 

 

Another count which I prefer as a major count can be seen below... and although a favoured count over other EW counts, we should always follow our trend indicator.