Great volatility

This is a very interesting market with great moves to play as a trader.

Yesterday I closed out the Bear Put Spread in the Eurostoxx 50 with a small loss since it started to turn up during the afternoon so I am only day trading some Eurostoxx 50 futures to the upside right now.

In the US yesterday I came in long and took half of the profits in the Bull Credit Put Spread just before the close since we had such a great rally. The wave count that I was tracking yesterday for S&P 500 is shown below.

I think that the impulse wave shown above should top out around 2690. However, I have started to look at the longer term count below as the most probable overall count.

If I drill down to the 10-minute chart for this one the count is very similar just that the potential for the rally is a bit greater over the next few weeks.

In the chart below you can see how these wave counts interact with each other for various time frames.

From an options strategy perspective that I use for position trades I think that the coming correction in wave-(x) would be something to play from the long side. I will monitor the market now with my remaining Bull Credit Put Spread to see how it pans out and just do day trades in the futures until the picture clears.

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