Prof. Aldo Lagrutta is an awarded Certified Financial Technician from the International Federation of Technical Analysts and holds several financial market designations, including the coveted Certified Elliott Wave Analyst.
He is a also a member of the Society of Technical Analysis, holds the CFT’e and is a recipient of the Bronwen Wood Prize bestowed by the Society of Technical Analysis in London.
Prof. Aldo Lagrutta grew up as a music child prodigy and became the youngest Professor to teach in several universities and conservatories around the world. He performed for 2 decades as a concert guitarist in Europe, Africa, North and South America.
I have a quick question. The SPX already formed a new high on closing, yesterday. When you have a divergence between the ES and the SPX, which one do you favor for your counts, or do you simply treat them as two separate assets?
I am attaching a screenshot of the SPX so you can see. While it was not a major penetration of the high, it definitely closed beyond it.
Will
Aldo Lagrutta
November 28, 2024
Hi Will,
Great question!
Because the SPX is not a Futures market, it displays patterns more accurately. You should always consult is for proper judgement. The ES is a Futures market and we should typically give it room for flexibility in regard to the patterns and rules. Hope this answers your question.
2 Comments
Thank you, professor and happy Thanksgiving!
I have a quick question. The SPX already formed a new high on closing, yesterday. When you have a divergence between the ES and the SPX, which one do you favor for your counts, or do you simply treat them as two separate assets?
I am attaching a screenshot of the SPX so you can see. While it was not a major penetration of the high, it definitely closed beyond it.
Will
Hi Will,
Great question!
Because the SPX is not a Futures market, it displays patterns more accurately. You should always consult is for proper judgement. The ES is a Futures market and we should typically give it room for flexibility in regard to the patterns and rules. Hope this answers your question.