SPX500 structure continues to inspire towards a large bear cycle below 2200 mark. We continue to present the bigger picture, no matter how irrational it may look during these times. The Head and Shoulder bearish reversal pattern also awaits a Right Shoulder formation, which could be around 3100/30 zone. On the weekly chart, we will have to wait a few more days for a bearish reversal candlestick pattern to appear. Looking at the wave counts, a classic Elliott Wave pattern 5-3, is in the making; SPX500 had dropped from 3400 through 2200 in 5 waves, Wave (1) on the chart. The subsequent rally is in 3 waves until now A-B-C, Wave (2) on the chart. Ideally, a 5-3 is followed by another 5 waves towards the direction of major trend, which is down in this case. If the above counts hold well, SPX500 should resume Wave (3) lower toward 2200 while keeping 3400 intact. It is just a matter of time before Wave (2) terminates.
Strategy:
Aggressively short against 3400, targeting below 2200.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Aggressively short against 3400, targeting below 2200.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.