A Few $SPX Comments

I have removed the nest of ones and twos you guys have been seeing at the highs. I didn’t like it and I found a way to balance the whole thing as a single 1-2 in blue (which you will see below).

In order for this to prove itself as a 3rd wave, it needs to get extension in it, and should be longer than blue 1 (and perhaps much longer). One ideal extension (1.618) takes us to 4175. That said, we may not go there in a straight line. We are at a fib now (the 78.6%) and it’s possible that we will see some kind of retracement. It doesn’t have to be here, and it can begin at lower prices, too, but, as a precaution, I have taken some profits and added a handful of calls in case we do get a playable retracement for an orange 2.

SPX


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3 thoughts on “A Few $SPX Comments”

  1. I think the ride down has just started… I’m not hedging long except for what’s left of the few beaten down industrial stocks after trimming for past week…

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