SPX500, SPX another bear trap

Lately, SPX500 has been extremely hostile to bulls and bears alike. When it sold off abruptly on Friday after Trump's tweet that US companies 'are ordered' to look for an alternative to China my initial reaction was to go heavy short. However, I think I was wise enough to close most of the shorts before the bell.

What nagged me was that
- I was missing that final 5th wave to complete ABC formation.
- also, the fact the market shrugged off fundamental news (Chinese tariffs) and sold-off on just another tweet which has no legislative/fundamental meaning seemed to be an overreaction.

Having studied the charts I think we will have another leg up in the coming week(s). Waves E tend to be very extreme so this move can be very painful for short-sellers.

The trading strategy would be
1. open longs on Monday open in CFD market (25% of future total position)
2. add another 25% longs if the price declines to 2849.6 (50% retracement of the bounce before the bell which I think was wave 1)
3. double the position if there is a clear wave 1-2 pattern and if the price moves impulsively beyond wave 1.

Comment:

expecting something like this but can come out in a different form of course. Now I am scalping these minor ABC waves.