S&P500 short-term: Upwards towards 1140-1150

Hello folks! Last post on the SPX, called for a rebound towards 1100-1150, suggesting strong resistance around the 1100 area. SPX struggled just above 1100, and went back down looking for support. We may be about to embark on another corrective leg up now, towards 1140-1150. Here's the daily, with the path projection:

SPX seems to have descended in 3 waves since the 1220 high, A[1]. Looking for a 3-waver up towards 1140-1150, B[2] (and setup the right shoulder of the Head&Shoulders), before a possible 5-wave impulse down, C[3] into the 900s. Other variations are possible, but this, for now is my preferred scenario.

Very short-term hurdles at the red downtrendline, followed by 1100 level. A break below 1040 anytime, will bankrupt this projection.

All the best!

Prechter on Yahoo! Finance: "Even $1 Trillion Can't Save the Euro, But Gold is No Safe Haven"

The euro's recent loss has been the dollar's gain, which means that it's not the best time to buy the U.S. dollar. Meanwhile, the most popular alternative to currencies, gold, isn't such a good buy either. Watch the second excerpt from Robert Prechter's May 20 interview with Yahoo! Finance Tech Ticker host Aaron Task to hear what Prechter thinks is in store for the U.S. currency and gold.

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Shanghai Composite Medium-Term: Upwards in wave C

After the sharp rise in wave A, there was an extended 9 month sideways consolidation. What i initially read as a bullish triangle scenario, turned out to be a wedge in a complex wave B correction, retracing 50% of the rise. I believe we are now setup for the medium-term wave C rise, before returning to the Longer-Term Bear Market.

Last post on SSEC noted a breakout of the sharp short-term downtrend. Since the breakout, SSEC rose sharply to 2680 (8% gain), before giving back 50% in the last week. Here's the updated daily chart calling for a medium-term bullish case:

Supporting Volume Cues

- the overall decline in the volume during the entire correction.

- every small rise was accompanied by rise in volume(& vice versa), during the correction

- the biggest continous decline had some of the lowest volumes.

Short-Term: Bullish

In the short-term, we can expect volatility & possibly one more new low. Subsequently, a struggle up towards 2890, and eventually the upper channel line. Overall, the downside from here on is limited, and risk-reward favours the bulls.

Very Short-Term: Neutral

In the very short-term, we could go eitherways as shown in the 30-min chart below:

• A break above the range, will offer a near-term target of 2780.
• A move below the range (boxed), may lead to a retest of the 2480 low. (An unlikely break below the latter level, will offer a target of 2280.)

BTW, this is the 100th post on this blog. Thank you for your support and criticisms. Keep 'em coming.

All the best!

S&P500 short-term: Rebound towards 1100-1150

Last post - S&P500 at "neckline" support, called for a weak rebound towards 1100, followed by a reversal down. Price rose in what looked like a 4th wave to 1190, then gapped down sharply in yesterday's trade to 1141. Based yesterday's strong action, hourly and daily oversold conditions & RSI positive divergences, a sustained rebound here is likely.

Initial rebound will encounter strong resistance at 1100, which is also the 200-day M.A. A sustained break above will target the 1150 area to setup a possible Head & Shoulders pattern. In the medium-term, a break below 1040, will target the SPX 900 area. This coincides with my view of a short-term rebound in Asian markets.

All the best!

Shanghai Composite Very Short-Term: Breakout

The above picture at half-time today - up 3%. See last post for details. All the best!