S&P500 - Is this just a fakeout ? Fantastic R/R
Updated
This is the SPY ETF but the count is the same for SPX too.
I don't know if we're in a 3 waves correction here or in a 1,2 situation.
- If price starts to go lower but in corrective fashion and doesn't invalidate the count, chances increase (by a lot) that we'll see a rally higher.
- If on the other hand it keeps on going lower, I expect this to be a wave C or Y, completing a Flat correction or a WXY combination that started on September 2nd.
- And if of course price goes above 269.4, this would make the Diagonal pink wave 3 the shortest motive wave hence invalidate the count and thus probably continue higher.
The R/R is great and completely makes up for the low probability of this setup at this point if you want to short right away.
For the more risk averse traders among you, you could wait for a sharp drop below pink wave 4 before initiating any trade or simply a 5 waves drop followed by a 3 waves correction.
I don't know if we're in a 3 waves correction here or in a 1,2 situation.
- If price starts to go lower but in corrective fashion and doesn't invalidate the count, chances increase (by a lot) that we'll see a rally higher.
- If on the other hand it keeps on going lower, I expect this to be a wave C or Y, completing a Flat correction or a WXY combination that started on September 2nd.
- And if of course price goes above 269.4, this would make the Diagonal pink wave 3 the shortest motive wave hence invalidate the count and thus probably continue higher.
The R/R is great and completely makes up for the low probability of this setup at this point if you want to short right away.
For the more risk averse traders among you, you could wait for a sharp drop below pink wave 4 before initiating any trade or simply a 5 waves drop followed by a 3 waves correction.
Note
I know there's a lot of labeling and it can get confusing for non-elliottitians so simply follow the arrows.if you want to learn a bit more about the Elliott Wave Principle, you can find my free channel below this comment.
or simply contact me here .
Don't forget to like, share and follow !
Questions? Chat or Comment on Ideas
Don't forget my public Telegram channel -
t.me/em16public
Thanks !
Questions? Chat or Comment on Ideas
Don't forget my public Telegram channel -
t.me/em16public
Thanks !
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.