#SPX = Daily Update = 22.11.2021 $SPY #investing $SPX #trading #ES_F #DowJones $NDX

Today’s closure of major indices is definitely bearish. Let’s explore the candlespeak and the waves perspectives.


SPX: daily bearish Engulfing signals at least one day of lower prices for SPX. The price closed marginally below 8 EMA. If the pullback continues tomorrow, a longer decline could be confirmed.
Odds: Neutral-Bearish

NDX: daily bearish Engulfing is quite strong, however, it closed above 8 EMA. Lower price is almost guaranteed for tomorrow, but the question is where it stops and what kind of candle it prints.
Remember that the weekly odds are bullish and they need to be overturned.
Odds: Neutral-Bearish

DJIA: The candle is Gravestone Doji if it was standalone. However, together with the previous one it makes bullish Harami and could mean a possible bottom in place (note DJI did not make a new low today). The odds are neutral-barely bullish. Tomorrow DJI is expected to make a trend decision.
Odds: Neutral-Bullish

Elliott Waves

I track three short-term 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.
    There is also a possibility that wave (2) completed as alt (2).
  3. Blue.
    The correction that started in September is not over. Possible wave C, targeting $4250-4300.

Long Term Forecast:

The long term forecast remains intact. Today’s move is not even registered on the monthly frame.

Good Luck!

Previous Weekly:

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