1:55 p.m. New York time
On the S&P 500 futures chart, the upward correction appears to not yet be complete, as the peak today, 2635.75 before the opening bell, exceeds the peak of 2,634.50, on March 26, which I had tentatively labeled as the end of Elliott wave 4.
Using Elliott wave analysis, what is happening, I think, is a combination of some sort that is still underway. The alternative is that today’s high was the end of wave 4 and wave 5 has begun.
Combinations are more common in 4th waves than in 2nd waves, so that pattern would come as no surprise.
I shall continue to hold my short bear call options spread positions, in anticipation of a 5th wave decline.
By Tim Bovee, Portland, Oregon, March 31, 2020
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.
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