Live: Tuesday, July 24, 2018

11:05 a.m. New York time

This morning’s gap to the upside on SPY confirms the Elliott wave analysis in the charts posted on Monday: The 4th wave of Subminuette degree {-1} to the downside ended on July 23 and wave 5 of the same degree has begun.

When complete, it will be the end of wave C of the Minuette degree, and possibly of the wave 2 counter-trend correction to the upside at the Minute degree {+1}.

Often in 4th waves the correction will be complex, with several three-wave patterns strung together, with the occasional triangle toss into the mix. And often a simple three-wave pattern is all that occurs. There is no way to predict it.

What we do know is that the upward correction is continuing, and the challenge will be to find an exit for my options bear positions on SPY that expire in mid-August. At this degree, the Subminuette,I would expect wave 5 to be complete within a week or 10 days, setting up a 1st wave to the downside that will benefit the positions.

By Tim Bovee, Portland, Oregon, July 24, 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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