At today’s open 10/01/20 the S&P 500 (SPX) had completed five waves up. Additionally, the hourly SPX – Stochastic had a bearish crossover, yet instead of continuing the decline that began on 09/30/20 the SPX moved above its 09/30/20 high. This changed the Elliott Wave count, there are now seven waves up from the 09/24/20 bottom.
Is the new wave count an Elliott Wave – Double Zigzag which is bearish or was the rally from late 09/30/20 to today’s high the first wave up of the next five wave pattern which is bullish?
We could have the answer soon, possibly by 10/02/20.
The new pattern has clear support/resistance levels creating a low risk opportunity to establish a long position.
Traders that have a time frame of a few days to several weeks – go long non leveraged SPX related funds.
Enter long positions on a move above 3397.20. If the SPX opens above 3397.20 buy at the open of the SPX session.
Use a move below todays SPX low of 3361.40 as a stop loss for half the position.
Use a move below the 09/30/20 bottom of 3340.50 as the stop loss for the second half of the position.