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z3m25
Sep 10, 2020 9:22 PM

Double bottom, what am I missing? Short

SPDR S&P 500 ETF TRUSTArca

Description

I'd like to see 2,000 as much as everyone else on here, but this may be the start of the 5th Elliot with a double bottom. What am I not seeing?
Comments
SamSzulc
The close leaves the door open of the potential for another low either in futures Sunday overnight or in cash Monday morning, could be an exhaustion gap down.
SamSzulc
The 3350 print will need to be regained if the low is already in place.
SamSzulc
First hurdle just hit that a low is already in place
SamSzulc
It's a 4th wave correction that either ended today or has 1 more slight low. The VIX peaked 1 week ago and is down as much as 35%, Put/Call ratio has risen significantly from their lows and is in same area as previous 4th waves of varying degree. More importantly, we only have 3 waves up from March low, and need a 5th wave to complete pattern. Pattern is the most important factor. With the widely believed mantra that the election will cause extreme volatility, that's a very crowded trade either being short stock Indices or buying the VIX. Most small traders/weak hands are already shaken out at this time. However, a break of 3233 would overlap Wave 1 and mean a top is already in place.
activechamp06
Seems more to be like a support zone that is slowly getting broken through
DaddySawbucks
Yeah looks like inverted H&S in hourly and closed on a higher low...
z3m25
kishnara
@z3m25, You are absolutely right. A few weeks ago, Barrons reported similar story how stock market repeats 10 year after oil market.
SamSzulc
@z3m25, Not until it happens, the chart has imaginary lines projecting future movement. There are several patterns that initially look similar at the beginning but then become another animal in the end.
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