#SPX = Daily Update = 17.11.2021 $SPY #investing $SPX #trading #ES_F #DowJones $NDX

Candles in major indices sent the mixed signals today, and the market seems to be balancing before making a decision. Let’s explore the hypothesis from the candles and waves perspectives.

Yesterday’s update:


SPX formed a Dark Cloud Cover. It is quite bearish, but require a confirmation. If SPX closes below $4680 tomorrow, if would confirm the bearish odds. Any closure above would keep the odds neutral – moderately bearish.
NDX made a possible Spinning Top. However, with lack of support from indicators the candle could also be an indecision doji. A confirmation is needed in the next few days. A closure above today’s high would confirm the rally.
DJIA has the most controversial combo. The 5-day formation could be viewed as a bottom. The last two candles could also be viewed as the beginning of a trend down.
In any case, a candle tomorrow is expected to make a decision.

Odds: Neutral

Elliott Waves

Currently track three possible paths as shown on the chart above:

  1. Green (primary).
    Wave 4 possibly completed and the target for wave 5 is in the $4770-4810 area. Note that there is a chance for a bigger wave “alt 4”.
    This is well aligned with the SPX swing alert on October 18 for target – $4750-4800.
  2. Red.
    Wave (1) completed. A bigger pullback to $4450-4600 in wave (2). Red rectangle.
  3. Blue.
    The correction that started in September is not over. Possible wave C, targeting $4250-4300.

Good Luck!

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