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Joseph Brychek
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I am a self-taught technical trader that uses Candlestick Patterns, Trendlines, Chart Patterns, Fibonacci Analysis and Elliott Wave theory as types of analysis that form the basis of my investment decisions after finding companies with excellent fundamentals.
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  • S&P 500 - Relief May Be Near 0 comments
    Jan 29, 2014 5:27 PM | about stocks: GSD.B

    Relief for the S&P 500 Index appears to be near, looking at the current downtrend from an Elliott Wave perspective. On the next chart, a 15 day 15 minute candlestick chart, I see a potential Motive Wave that has completed or is nearing completion.

    (click to enlarge)S&P 500 Index - Potential Motive Wave Almost Complete

    The three potential Elliott Wave breakdowns I illustrate indicate the following:

    1. Blue Wave - the downtrend ended today. Relief should be expected as early as tomorrow morning.
    2. Red Wave - the downtrend needs a few more days to complete and will include 1 or 2 additional down days in the triple digits.
    3. Green Wave - the downtrend needs a few more days to complete, finishing its downtrend with an Ending Diagonal Wave Pattern.

    After the development of the Motive Wave to the downside, a corrective wave should follow. The corrective wave should bring the S&P 500 back to the 1830 range. The completion of the Motive Wave and then the Corrective Wave should look something like this next illustration:

    (click to enlarge)

    Once the market gets back to the 1830 range, supply and demand at that point will determine the market's next short-term move. However, watching price and volume action as the S&P 500 starts rebounding could give clues to that next move. Stay tuned.

    Stocks: GSD.B
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