You get the picture via the Elliott wave count applied to the NYSE Composite Index above. Overhead resistance should prove formidable, if it is tested at all. The Elliott Wave Principle's "alternation guideline" in relation to wave a of 2 suggests the NYSE Composite in forming wave a of 4 probably will exceed its September peak, how ever slight this might be on account of overhead resistance.
My outlook here is bolstered by a McClellan Oscillator, first, on all counts supporting my current wave count bias and, second, tiring while the market's levitation since early-June approaches an anticipated, near-term end. The NYSE Summation Index further displays a nugget of gold likewise substantiating my less than ebullient outlook, this immediately speaking, as well as looking out some months from now.
Here's where I think we are: exactly the reverse of one week ago in a trend about to turn the other way.
Those several other technical measures recently cited as supporting my outlook remain no less foreboding.
* * * * *© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.
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