Major indices sent a solid bullish signal today, but whether it is enough to break the trend we will know no earlier than tomorrow. Anyway, let’s evaluate the perspectives of candles and waves.
CANDLES
Daily
SPX formed a bullish Harami on a high volume. If it closes tomorrow above today’s high, the reversal would be confirmed. Otherwise, the bearish odds will be higher.
Odds: Neutral
NDX failed to make a bullish Engulfing. Still, the bullish Harami is strong but require confirmation tomorrow. Price back above 8 EMA adds optimism as well.
Odds: Neutral-Bullish
DJIA: similarly to SPX, a bullish Harami that require confirmation. In DJI case, a daily closure above Friday’s high would do.
Odds: Neutral
ELLIOTT WAVES
SPX
Two paths for SPX, the blue one has a slightly higher probability:
1. Blue.
The correction – wave (2) is over and wave i is complete. After a pullback in wave ii, expect a strong rally in wave iii.
2. Green.
Possible zigzag for a bigger corrective action in wave (2).
Previous update with details:
https://investingangles.com/2021/11/28/spx-possible-path-1-28-11-2021-spy-investing-spx-trading-es_f-dowjones-ndx/
DJIA
Wave C does not look complete and I am expecting one more lower low before the real bullish action starts. It might happen overnight or early tomorrow. The possible path is on the chart.
Previous update with details:
https://investingangles.com/2021/11/28/djia-possible-path-1-28-11-2021-dia-investing-spx-trading-es_f-dowjones-ndx-spy/
Tomorrow is the monthly closure – tune up for an overview on global indices (subscribers only).
Good luck!
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