Trade Recommendation – Update

The previous blog had a recommendation to buy non leveraged funds that track the SPX in the price zone of 3420 to 3380.  Today the SPX opened below the zone – no trade. 

Subsequently the SPX went below the low of 9/4/20 which was important Fibonacci support. This opens the door for the SPX to reach the next Fibonacci support, which is where the September drop would equal the June decline. That level is SPX 3320.   This price is equality between the supposed wave “2” in June with the current decline the supposed wave “4”. 

From a Fibonacci time perspective, the June decline was about five trading days, this implies the supposed wave “4” could complete this week. 

The SPX finished the 9/8/20 session only eleven points from the support target.  It’s not necessary to catch the low tick.  For now, hold off on any long  positions. Let’s see what happens on 9/9/20, another blog will be coming soon.

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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