$SPX Update

If the discussion discussed previously (here and here) is right, we should be in an impulse wave. I am labelling that as minute (blue) 1.

If that finished today (I don’t yet know that it has), we should see a 3-wave structure for blue 2 that ideally takes us to the bottom of the orange box. It’s possible that we’re in orange “a” of that blue 2. We may be forming an expanded flat. All of this is very uncertain and I will have to see more structure over the coming day or so to get more clarity. If it is an expanded flat, we can go and revisit the top of the gap (orange line):

I have bought back the puts I closed yesterday to average the whole lot down, because if the market is very bullish, I will need to get rid of them, and by averaging them down while we’re up here, I can get better prices when I convert them into a credit spread if we get this deeper blue 2 (it may be the only chance I have to get rid of them). I have also opened some bear call spreads above the red bearish wedge. So, let’s see what tomorrow brings! We should get some kind of consolidation of pullback soon.