S&P500: too early to crash
Source: http://www.g2trader.com/index.php?option=com_content&view=article&id=44:sap500-too-early-to-crash&catid=1:elliott-wave-theory&Itemid=6Posted on Thursday, November 13th, 2008 | In Market Commentary
S&P500 reached today its first target at 850, previous bottom, and now two scenarios are possible.
Now, looking at the last wave structure, we are probably still inside a fourth, corrective wave, labeled with “4 of (3)” in my chart. If S&P500 holds 850 points, it could be possible to see a corrective upward movement to 1010, again. Otherwise, the break of 850 should push the index to 800 and then 670. But looking at the duration of wave (2), I am expecting a similar duration for wave (4), and hence I consider this last wave an intermediate movement of a greater fourth wave correction, from which it is highly probable to see a pullback towards previous top at 1010 points. That’s why it seems too early, now, to see the final crash.
Next setup dates are 18th of November, 27th of November and the period 8-18th of December. During those date we could see some changes in trend. Particularly, the period 8-18th of December could intercept an important bottom of the market.
18th of November could intercept the top at 1010 points.
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Last 5 posts by Graziano Nanetti
- SP/MIB: go down, nice and slow ... - February 17th, 2009
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Graziano Nanetti is an independent analyst and has years of experience in technical analysis for stocks and indexes. G Squared is born from an idea of Graziano Luciano and Graziano Nanetti, founders of G Squared.
Previously, Graziano Nanetti was the author of the financial blog RNE Trading. His blog expanded to include more detailed contents about markets and to publish the great material he received from Graziano Luciano.
Now, G Squared is aimed at pubblishing open minded financial articles about few major indexes (S&P500, S&P/MIB, Nasdaq100) belonging to financial international markets.
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