SPX500 has carved yet another lower high at 3233 around 08 June 2020. The earlier wave structure has been clear as follows. The drop between 3400 and 2200 has been an impulse, Wave (1) on the chart. The subsequent rally has been corrective A-B-C and has terminated around 3233, Wave (2) on the chart. If the counts hold well, SPX500 is on its way towards 2200 and lower as Wave (3) progresses. Ideally the indice must stay below 3233, going forward. The pattern is a 5-3 Elliott Wave structure, and another 5 wave move should be seen towards the downside. We favor to sell SPX500 on rallies until prices stay below 3400, broadly. The classic/conventional Head and Shoulder reversal also seems to be ready for the next move lower towards 2200.
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.