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Ending Diagonal SPX 500

Written by Neboxian
November 7th, 2009at 1:17 pm

Spx eod 110609 ending diag

Ending Diagonal SPX

The Market set up very nice for a reversal Monday with a terminating signal at the end of the C wave and the top of wave 2 with a potential of very nasty and long downward wave 3 to begin.

We could see a bit of an overthrow at the open to touch the top of the Rising Bear Wedge ….stops should be placed above the resistance zone ….if it gets above there this is not an ABC Retracement but a possible resumption of the larger up trend.

http://neboxian.blogspot.com/2008/08/triangle-reversal-pattern-part-3-of-3.html

Here is a Video I made on reversal triangles the Technical term for them is Ending Diagonal but I try to use more generic terms …What is Important is to get an understanding of the basic concept.
http://neboxian.blogspot.com/2009/07/markit-tao-thurs-7-23-09.html
Here is an example of an ending diagonal Failure….. that’s why I encourage stops…..if ED’s fail they are very explosive… and if ED’S work they are as equally successful…..

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Categories: Breadth ,Charts ,Commentary ,Elliott Wave ,Markets

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2 Responses to “Ending Diagonal SPX 500”

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  1. NeboXian NeboXian says:
    November 7, 2009 at 10:25 pm

    This is very much a boarder line call …I agree with your assessment as well …..the upward pitch of the formation is shallow and has potential for one more thrust up into the resistance zone before a turn down…..thanks for your observation

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  2. Mr. Trader Mr. Trader says:
    November 7, 2009 at 10:13 pm

    Nice post, I think you are right for the most part, I just think what you have labeled as an ED is a consolidation/contracting triangle before another thrust higher (what you refer to as throw-over) and then a reversal downward. But overall we are on the same page.

    Reply

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