4xForecaster

Predictive Analysis: Brown And Reclused: SPDR? ... No, Bears!

AMEX:SPY   SPDR S&P 500 ETF
296 2 5
Friends,

At 4xQuad, we like to keep our ears on the ground and look for significant early market conversions, where the shift between bears and bulls occurs with discretion, but distinct technical patterns.

In the case of the SPY             , a significant price decline occurred following a top consolidation. For the advanced pattern traders, some might possibly distinguish a price action reminiscent of a modified Wolfe Waves Pattern, whereby price declines from 5-prime and aims to make contact with the 1-4 line (red dashed line). For the structural analyst, a new structure low has been carved at the close of the market, suggesting an imminent market reversal situation.

In the case of our own predictive analysis, we perceived a significant, early bearish market reversal signal, although a confirmation signal remains to be seen. However, we like to project high-probable directional opinions, targets and forecast, so while we wait for that confirmation, we decided to leave in the chart what we perceive as a probable scenario, if price indeed confirmed its bearish intentions. We drew a similar predictive scenario for Copper             back on December 18th 2013, and to this day, the path has held (see copper's recent posting on our site at www.4xQuad.com).

For the time being, a significant overhead resistance has been defined at 183.23, and at its antipod, a significant support has emerged at 176.19. We will keep our mind open as far as providing a directional bias, however, we will leave our "Direction Prediction" to NEUTRAL until such time that a bearish market reversal confirmation is release. Then, and only then, expect to see red.

OVERALL:
The market has definitely turned its gaze downwards, and bears are coming out to claw their ways into new lows. Significant resistance/support levels have emerged in this market conversion, but our stance remains neutral-to-bearish.

Cheers,


David Alcindor | 4xQuad.com
Predictive Analysis & Forecasting
Denver, Colorado
USA


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David Alcindor, CMT Affiliate #227974
Alias: 4xForecaster (Twitter, LinkedIn, StockTwits)

Signal Service or Private Course - Contact: admin@KADAInstitute.com
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1 - #USDollar: http://on.fb.me/19Pf77y
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David Alcindor | 4xQuad.com
Predictive Analysis & Forecasting
Denver, Colorado
USA
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TradeViewers,

I hope you got to jump into this one we published last Friday at the close. A LIVE example of a successful Wolfe Waves pattern, hitting its 1-4 Line on the spot.

David Alcindor | 4xQuad.com


---------------------------------

Follow us via Twitter: @4xForecaster
Check our charts in TradingView.com: 4xForecaster
Like Us! on Facebook: www.4xQuad.com

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