In this technical blog we’re going to take a quick look at the Elliott Wave charts of SPX, published in members area of the website. SPX has incomplete bullish sequence in the cycle from June 3rd low (2730.28). The Elliott wave structure has been calling for further strength in index. Consequently, we advised members to avoid selling SPX and keep buying the dips in the sequences of 3,7,or 11 swings whenever opportunity presented itself. In further text we’re going to explain Elliott wave structure and trading strategy.
SPX 1 Hour Elliott Wave Analysis 7.9.2019
Current view suggests SPX is correcting the short term cycle from the 2913.13 low. Pull back is showing 3 waves down from the peak, when equal legs is already reached at 2965.97. Due to incomplete bullish sequences we favor the long side and buying the dips in 3,7, or 11 swings against the 2913.13 low. Buying zone comes at 2965.97-948.49 ( blue box area). At mentioned zone we like to be buyers for proposed rally or 3 wave bounce alternatively.
Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. The main trend is bullish and we expect to see reaction in 3 waves up from the blue box at least. As soon as the bounce reaches 50 fibs against the b red high, we will make long positions risk free. Invalidation level for the intraday buyers is break below 1.618 fib extension: 2948.49.
SPX 1 Hour Elliott Wave Analysis 07.15.2019
Buyers appeared right at the blue box:2965.97-948.49 and the price completed wave (iv) pull back. SPX made nice rally from the buying zone and gave us profits. Current view suggests we are about to complete 5 waves structure, Elliott Wave Leading Diagonal- wave ((i)) black. As soon as wave ((i)) completes, we expect wave ((ii)) pull back to correct the cycle from the 06/13 low which should ideally provide us with new trading opportunities. We don’t recommend selling the indes in any proposed pull back.
You can learn more about Leading Diagonal Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.
Keep in mind that market is dynamic and presented view could have changed in the mean time. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room. You can check most recent charts in the membership area of the site.
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