Sharp Stock Reversal – Part – Two

Today 04/22/22 the powerful stock decline that began 04/21/22 continued through the entire trading session.

Today at the S&P 500 (SPX) open, traders sold half of a 50% long position on non-leveraged SPX related funds.  The long entry was at  the open of the SPX 04/18/22 session.

SPX open price on 04/18/22 was 4385.63.

SPX open price on 04/22/22 was 4385.83.

Traders sold the second half of the 50% percent long  position when the SPX moved below 4360.00.  The loss was 25.63 SPX points or 5.8 tenth of a percent.  The loss on half of a 50% position was 1.4 tenth of a percent.

The sharp drop has increased the probability that the main SPX Elliott wave count is now bearish.

The 30-minute SPX chart courtesy of Trading View illustrates the wave count.

The next blog will examine  this wave count in more detail and illustrate the alternate SPX bullish Elliott wave count.

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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