Live: Wednesday, May 23, 2018

3:00 p.m. New York time

No trades today. The Elliott wave count from this morning remains valid, and the Fisher Transform signals downtrending on both the daily and the monthly charts.

10:30 a.m. New York time

The S&P 500 index and its exchange-traded fund SPY continued the decline started yesterday, bringing the Fisher Transform on the daily chart back to a downtrend signal. The monthly downtrend signal continues, as it has since February.

I shall continue to hold my SPY options (here and here) and shares in the inverse S&P 500 fund SPXU.

I have reworked my Elliott wave analysis to account for the higher high of May 22, which broke Elliott wave doctrine by exceeding the starting point of the 2nd wave down of the same degree.

The new labelling extends the 2nd wave of the Subminuette degree into a five-wave combination pattern.

To simplify matters, I have reverted to my earlier nomenclature that shows degrees relative to each other, with a base set showing the wave number only, and degrees above and below that base being indicated with a plus-number {+1} or a minus number {-2} in curly brackets. I’ve added a table suggesting what named degrees the relative levels indicate, but it’s a guess and may change.

The chart below shows SPY price from the beginning of the year, with daily bars.



By Tim Bovee, Portland, Oregon, May 23, 2018

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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