Despite I have been expecting strong sell-off in SPX/SPX500 I have to change the view to a bullish stance. SPX can be interpreted both ways but SPX500 is subdividing from its top on 8th of Aug in a clear 3-3-3 wave pattern. This makes me suspect we are in a bear trap right now. If the price declines and reverses I will be opening long positions to catch the final motive wave of this correction that can last a week or so and should be a strong impulse wave move.
This will coincide with my bullish bet on USOIL and smaller oil stocks. I also see that individual stocks that I have bought puts for (FB, WFC, HPQ etc.) are poised for a short-term bounce as they completed wave 1 down. I think I will sell some of the puts to lock the profit and reenter in a weeks time.
You nailed it. I was on the other side of it and got stopped out this morning.
Fomenka
⋅
@JekkTrade, Thanks. I flipped from bear to bull once I plotted this chart.
JekkTrade
⋅
@DEUS, Looks like it's now closing below your 50% retracement line. How likely is 2831. Are you shorting the bounce or putting some short exposure to the index on overnight?
@AndrewLoveless, this one is a possibility. The alternative is that we are in a broader bull market to make another all-time high. But let's stick to longs for a week and then we'll see.
WaveWalker
⋅
thanks...
Fomenka
⋅
@bwalker1159, welcome
WeiShingLee
⋅
Elliot counts are well plotted. Thanks for sharing