Sine tomorrow I will be travelling for one week and I will be off the screens I want to share my thoughts regarding the current Elliott Wave pattern and the potential outcome.

Despite weekly oscillators remains a major concern:

• RSI negative divergence in force since July 2014
• Stochastic bearish cross on January 9
• MACD bearish cross on January 16

The aggressive advance from the January 16 low has neutralized a potential reversal pattern. Bulls with  the help of accommodative action of the ECB have regained the upper hand. Going forward odds favor new All Time Highs.

If this is the case we need to see:

• Weekly RSI breaching the trend line resistance off the December 5 peak
• Weekly Stochastic holding the 80 line and cancelling the bearish cross
• It remains to be seen if MACD will cancel its sell signal

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A larger bounce until Wednesday is probable afterwards  it will depend on how buyers react to next Thursday´s ECB monetary policy resolution regarding a broader asset purchase plan.

As discussed in my last update weekly oscillators are causing uneasiness. This week the confirmation of the bearish cross of the Stochastic and the MACD are a major concern.

The sell signals if they are not erased could lead to a bearish resolution (Most likely confirmed if next week the stochastic loses the 80 line)

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1. TQQQ

• 15 minutes time frame: Potential Inverted Head & Shoulder with a measured target at 98.50

Staying above 91 would maintain a constructive pattern

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