Stock Market Looking for a Minor Pivot Low Today
Stock-Markets / Stock Markets 2014 Oct 10, 2014 - 03:51 PM GMT
SPX is still lower in the Premarket. I am referring to the daily SPX chart to show the next levels of support. They are the mid-Cycle support at 1911.38 and the 200-day Moving Average at 1904.86.
The original reason for calling for a bottom today is that the Trading Cycle (~60-64 days) is due. However, the SPX is in a Panic Cycle (43 days), so today’s low will be a lesser Pivot, not a major low.
A closer look suggests that Wednesday’s rally may be a Wave (c) of Minor Wave [b].
Today’s decline may complete a Minute Wave [i] at or near the 200-day Moving Average at 1904.86. A glance to the left side of the chart shows the August 7th bottom at 1904.78. This may be no coincidence. It is the perfect setup for a Head & Shoulders formation that indicates the minimum target for Minute Wave [iii].
If Minute Wave [i] ends higher, then it may be possible that sub-Minute Wave (b) is very likely to visit the 200-day. The Market simply wants to go lower, despite attempts to save it.
Earlier this morning, ZeroHedge reported a “Sea of Red.”
They further reports, “Since stock "market" fundamentals haven't mattered in about 6 years, maybe it is the technicals that do (not really: only theFed's $4.455 trillion in "assets" matters but that's a different story). In which case, here is a chart of the SPX with the key 50 and 200 DMA support levels: keep an eye on the red line - if the 1904 support is broken, it's a long way down.” So the effort to make a “final save” may be on.
However, Europe and Japan are basket cases. In addition, NDX just broke its Orthodox Broadening Top trendline and is poised for its descent to the 200-day. It also may form a low at its Minor Wave 4 low at 3845.20, forming yet another Head 7 Shoulders formation.
Regards,
Tony
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