S&P500, Tuesday OCT 30, 2012

Hi Traders,

I've been asked whether I'm still bullish on S&P500. I do, and I'm still in, although I've been stopped out twice in a row and I'm dangerously close to my stop loss.

It's not stubbornness. I just reviewed my analysis and it doesn't seem to be wrong.

I suggest to go straight to the 1-hour chart to see the double bottom. More urgently, check the 15 min chart to see the Candlestick reversal and the perfect entry point.

SITUATION

Basically nothing has changed as you can see in the weely chart below. Clearly, we now need the last jump up, meaning the last wave 5 up.

Possible targets: 1530, 1628, 1740, 1755 and 1855, the most likely target area being 1740-1755.

Also, what's going to be the effect of the incoming election on S&P500

In the daily chart below the S&P500 touches the magenta channel for the 4th time. Although I don't see a candlestick reversal I see a lot of doji candles, meaning that

• there's not market (hurricane Sandy)
• there's no apparent intention to go down 

BUT ...

The Elliott wave's count in the 4-hour chart below shows the completion of 5 waves down, a nice double bottom and a candlestick reversal (bottom right).

In the 1-hour chart below we have a triple bottom, the completion of 5 waves down and a Stochastic positive divergence.

In the 15-min chart below we have a triple bottom, the completion of 5 waves down, a nice reversal candlestick and the new waves 1 and 2, the latter being the perfect entry point.