S&P 500 Continues to Rise

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.  

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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