10:45 a.m. New York time
What’s happening now? The S&P 500 E-mini futures continue the early stages of what will become a significant decline.
What does it mean? The movements we’ve seen since June 8 are the gentle opening bars of Wagner’s “Das Rheingold”, and as always, with Wagner and the markets, it will be followed by drama aplenty, in the form of a major decline
What does Elliott wave theory say? Minor wave 3 within Intermediate wave 1 began June 19. The encompassing degree, Primary wave 3, began June 8, and will carry price The movement of the encompassing degree, Primary wave 3, will a significant distance toward the 2000 level, from the 3054 price as of this posting.
What is the alternative? It will take a break below 2976.25, the end of Minor wave 1 attained on June 15, for Minor wave 3 to be verified. Without the verification, it is possible that Minor wave 2 is tracing a complex course. I don’t consider this to be likely.
What about my trades? I anticipate no trades today. I’m waiting for Intermediate wave 3 before entering bear call options spreads on SPY. My shares, SDS, make money when the S&P 500 declines. They became unprofitable at the beginning of Primary wave 2 at 2174. So I’ll hold my shares during the ride down to 2000, and then begin trading in and out to catch impulse waves at the Intermediate degree.