SP500 SPY | Elliott Wave | Bears View on Gaps | Jeremy Wagner

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The gap open higher today filled a gap from the COVID crash earlier this year. The minimum waves can be counted in place to consider this retracement higher as terminated.

With such a count in hand, don't rush out to short. Let the market confirm to you that a top may be in. Wait for lower levels to break. If today's gap fills (tan box), it indicates a swing top is in. The question is whether that swing high is minor or major. Keep an eye on the upward sloping trend line too.

Anticipating a retest of the lows if/when this breaks down.

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