Has another short term top been made?

On last Thursday I was too busy with other stuff in order to day trade the futures markets which I am thankful for šŸ™‚

The US stock market melted to the upside all day and at the end of the day, I saw a complete 5-wave advance which I think was wave-c of the larger wave-(iv). I posted a Heads Up post on the blog before the close that I was establishing Bear Put Spreads again and the market then broke sharply to the downside.

The chart above shows the very short-term perspective which I was looking at on Thursday. Everything looks all set for a big down day on Monday, what if it does not happen? Well, I could not care less, I will just exit the position and re-evaluate. I trade the odds and I don’t have a bias, I am just as comfortable shorting for all I’m worth in one instance and then turn around and go long if I see a change.

Looking at the larger picture the best wave count right now is the following for S&P 500.

Happy trading!

Trackbacks

  1. […] potential for a good down day as I wrote about this weekend materialized and the S&P 500 broke down through the last […]

Leave a Reply

%d bloggers like this: