S&P continues to extend higher with our Elliott wave count shown below. We believe it is not the time to open long positions but to be ready to open short positions to take advantage of the highly possible downward correction that could push prices towards 1700.
Today’s marginal new high might be the final fifth wave but we can give it some more room to unfold towards 1750 maybe. The first sign that the upward move from 1646 is over will be the break of 1732. Breaking below 1732 will confirm the top is in. If the high is already in place then we should expect the first part of the downward expected correction could reach 1722. The upward move we believe should be counted as above. There are many other wave count possibilities that imply that this upward move is just another bigger corrective pattern. Technically speaking just in order to find a tradeable opportunity, we wait on the side for the time being favoring short positions if the correct sell signals are given. Bulls have more to lose at these price levels and should raise their stops.
For more help trading this index become a member today. As always, thank you for taking the time to catch up on my thinking,