Monday, February 27, 2012

S&P 500 ~ EOD Update ~ 27 February 2012

I just wanted to clarify that I'm still bullish (because of my previous post which problably sounded bearish). The uptrend is still very much intact.
As long as the SPX keeps bouncing from the support levels and not breaking them, you shouldn't even dare to short the market:

As for elliott wave: it's very difficult to count such slow grind ups since fifth waves can often extend almost endlessly. So in these situation I usually focus primarily on support and resistance levels and the overall trend. If I had only focused on EW I'd probably be out of the market since 1330 missing the last 40 handles. Very often it's better to concentrate on the bigger wave (wave [iii] up) instead of trying to guess the top i. e. the end of subwave (v).