Elliott Wave: Week of 9/4/18 - Winning in the Red Zone
Football season is finally here! Time to start thinking Red Zone, whether scoring or playing defense. This week's chart coincidentally includes a Red Zone at Fibonacci level SPX 2916.
Last week SPX 2916 proved to be a near term top of the recent ascent. Positioning there for a brief (shallow) decline was worth an attempt and may still play out a little further early in the week. However, upward trend is undeniable so looking for a suitable pivot for an upward move makes more sense. Disclosure: I took a small short position near 2916, closed half on Friday at the lower level Fibonacci projection (2893) and kept half. I won't overstay my welcome and want to position with trend.
In the big picture we have to cross over the Red Zone of 2916 and plan for Wave 5's end. A confluence of Fibonacci levels point to 3083 (left side using higher degree Fibonacci levels). That sits nicely between the lower level Fibonacci extension targets between 3039 - 3115 (white and yellow, respectively).
If you click on the chart, hold, and drag right you'll find more (higher degree) Fibonacci levels that reflect a confluence around 2915 and then 3100. We have to cross the Red Zone to get into that next level to complete Wave 5.
Other considerations: I'm a fan of using multiple technical indicators and don't mind experimenting. This week's chart has a Directional Movement Indicator that I'm assessing. MACD (or PPO) are always reviewed. Lastly, identifying entry points and then price behavior are useful for planning and managing trades. With such an emphasis on Fibonacci levels I therefore use Gartley and Harmonic patterns. One pattern has been useful for this entire trend since February (see February 11, 2018 chart).
That beautiful "Butterfly" has a letter "D" right around where we are heading at present time. The move off re-test low (around C) has been rewarding. Unfortunately what comes after D will prove challenging, but that can wait for now.
Hope everyone is enjoying the Holiday weekend!
Last week SPX 2916 proved to be a near term top of the recent ascent. Positioning there for a brief (shallow) decline was worth an attempt and may still play out a little further early in the week. However, upward trend is undeniable so looking for a suitable pivot for an upward move makes more sense. Disclosure: I took a small short position near 2916, closed half on Friday at the lower level Fibonacci projection (2893) and kept half. I won't overstay my welcome and want to position with trend.
In the big picture we have to cross over the Red Zone of 2916 and plan for Wave 5's end. A confluence of Fibonacci levels point to 3083 (left side using higher degree Fibonacci levels). That sits nicely between the lower level Fibonacci extension targets between 3039 - 3115 (white and yellow, respectively).
If you click on the chart, hold, and drag right you'll find more (higher degree) Fibonacci levels that reflect a confluence around 2915 and then 3100. We have to cross the Red Zone to get into that next level to complete Wave 5.
Other considerations: I'm a fan of using multiple technical indicators and don't mind experimenting. This week's chart has a Directional Movement Indicator that I'm assessing. MACD (or PPO) are always reviewed. Lastly, identifying entry points and then price behavior are useful for planning and managing trades. With such an emphasis on Fibonacci levels I therefore use Gartley and Harmonic patterns. One pattern has been useful for this entire trend since February (see February 11, 2018 chart).
That beautiful "Butterfly" has a letter "D" right around where we are heading at present time. The move off re-test low (around C) has been rewarding. Unfortunately what comes after D will prove challenging, but that can wait for now.
Hope everyone is enjoying the Holiday weekend!
Trade closed: target reached:
I closed the remaining 1/2 short position early this AM around SPX 2888.
Trade active:
I'm back long and with trend via new position(s) today.