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:
https://investingangles.com/2021/11/16/spx-daily-update-16-11-2021-spy-investing-spx-trading-es_f-dowjones-ndx/
CANDLES
Daily
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:
- 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.
https://investingangles.com/2021/10/18/important-info-subscribers-only-3/ - Red.
Wave (1) completed. A bigger pullback to $4450-4600 in wave (2). Red rectangle. - Blue.
The correction that started in September is not over. Possible wave C, targeting $4250-4300.
Good Luck!
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