S&P is covering some yesterday’s losses, but probably trades only in a corrective pull-back, labelled as a blue wave (iv), as a sharp decline from the 1207 shows a personality of a third wave.
With this being said, a current trend remains bearish for S&P500 as long as the market trades below 1194 critical wave (i) region since we know that in an impulsive structure wave (iv) must not trade into a territory of a wave (i). Target of a wave (v) would be around 1160 region.
Guest post by Gregor Horvat
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