S-T Mo Failure Defers S&P Bull into Year-End, Defines Tight Bear Risk Level 6-12

Posted on 12/6/2017 8:10 AM by Dave Toth

Although the 240-min chart above shows that the market has yet to fail below last Fri’s 2605 intra-day corrective low, we believe its failure yesterday below Mon’s 2633 initial counter-trend low as well as a 240-min close below Fri’s 2633 corrective low close is sufficient to conclude a bearish divergence in momentum and complete 5-wave Elliott sequence from 15-Nov’s 2555 low to Fri’s 2665 high as labeled above.  Per such Fri’s 2665 high serves as a tight but objective risk parameter from which traders can objectively base non-bullish decisions like long-covers and cautious bearish punts.

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