When the price overpassed 2075 after retracing to 2039, I thought SPX500 would be bullish for some time and try to tag the double top. But now, finally, looks like this correction will follow the classical A-B-C zig zag.
We had Wave A finished at 2039, then the B was quite long, ending near 2080, and now we can see the price heading back to 2039 area. We had a doji today which is important: dojis have to be confirmed by next candle and, if this candle is bearish, the quote will surely follow in that direction.
Once we pass and secure 2054, which has been our resistance so far, I short SPX500 targeting 2001 figures. Notice on 11th of May one of the hour candles achieved to close below 2054 but next hourly candle recovered the level immediately. Therefore, I recommend to short only if, at least, one 4H candle closes below 2054.
SL - at 2067, just above an important price level which has also been tagged many times during these days with two closes of the day included. TP1: 2035 TP2: 2001
Trade active
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Although the trade was close to hit the SL, it was saved by some cents and then went in a direction I expected. Eventually, we will be testing 2039 level by the beginning of the week
Trade closed manually
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This year the strategy has failed: September levels were clearly higher than May ones although S&P made an attempt to run lower
Notice a Head & Shoulders pattern and a Daily 200 MA which would surely be a limit for this decline