S&P 500 EOD Review 10 Feb 2012

A really weak impulsive move down. This does not look like a part of any major correction. It is looks more like just a small or sideways correction. The hourly MACD is turning down and has crossed the zero line. It is very much in a neutral zone. The divergence on the hourly MACD still exists but it is getting shallower by the day with each new higher high registered.

We have either five waves down or the first four of the five waves down. Further downside is expected as five waves will be followed by another five waves .At the moment the target is 1316.

S&P 500 EOD Elliott Wave Chart 10 Feb 2012

S&P 500 Fibonacci Confluence

The market moved to the lower limit of the current band at 1338 – 1362.

S&P 500 Daily Fibonacci Chart 10 Feb 2012

S&P 500 Volume and MACD

The volume is light still. The daily MACD is turning down again.

S&P 500 Daily Volume Chart 10 Feb 2012

S&P 500 EOD Review 09 Feb 2012

The S&P 500 has formed what looks like a diagonal. This whole run is quite amazing. It has been chugging along slowly but steadily and breaking a lot of resistance along the way. Furthermore, the volume has been light on the way up. Is the diagonal and ending diagonal or is it the move prior to the last move? Which means that there could be one more leg up. The hourly MACD is starting to turn up but the divergence with the previous peaks still exists.

Notice that the market is tagging the blue line on the top side of the line? This type of tagging usually results in a move in the opposite direction.

S&P 500 EOD Elliott Wave Chart 09 Feb 2012

S&P 500 Fibonacci Confluence

The market is getting deeper into the Fibonacci band at 1338 – 1362. The significance of the Fibonacci Confluence bands is that it is an area that marks the target of many previous moves and Fibonacci retracement levels. The reason for using this band is because the market would likely head to one of these bands and so we can use that as target level. It also marks the end of trend.

S&P 500 Daily Fibonacci Chart 09 Feb 2012

S&P 500 Volume and MACD

The volume is still light. The daily MACD has turned upwards. The 200 D MA has also turned upwards albeit very slowly.

S&P 500 Daily Volume Chart 09 Feb 2012

S&P 500 EOD Review 6 Feb 2012

Well it’s another sideways day. Sideways move is usually consolidation days and it is likely we will see one more leg up before a correction. Target is around 1360. Point to note that the hourly MACD has broken through the resistance formed by the amber line. The 200 D MA has flattened and is starting to turn up.

S&P 500 EOD Elliott Wave Chart 06 Feb 2012

S&P 500 Fibonacci Confluence

The S&P has pierced the lower end of the Fibonacci band at 1338. It is now sitting in the middle of this band.

S&P 500 Daily Fibonacci Chart 06 Feb 2012

S&P 500 Volume and MACD

The volume is relatively low compared to the previous session which was a up day indicating that there are more buyers in the market. The divergence on the daily MACD is still there but it is flattening.

S&P 500 Daily Volume Chart 06 Feb 2012