In this brief idea, I will discuss the recent performance of the S&P 500 Index (SPX) futures and provide some educational insights for new traders.
Over the course of Friday and the weekend, SPX futures experienced a considerable incline, followed by a slight correction. From the low at the Europe open, it appears that a 5-wave impulse has completed, and based on the subsequent rejection, we may be looking at a downward move.
Before I go deeper, let's take a moment to explain impulse waves. In Elliott Wave Theory, impulse waves are the building blocks of market trends. They consist of five waves, with waves 1, 3, and 5 moving in the direction of the trend, while waves 2 and 4 are corrective waves that move against the trend.
Returning to my update, I have a downside target for SPX futures at around 3985, but if the decline occurs more quickly, we could see a drop as low as 3970. This would correspond to a touch of 3950 on the cash SPX index.
If my interpretation is accurate, SPX futures should be completing a wave A, which would imply another upward move before descending towards our target. It's still too early to confirm this scenario, but we should see resolution within the next couple of days. If we reach the downside targets of 3970-3975, I expect a subsequent move back up to roughly 4020-4050.
It's important for new traders to understand that market conditions can be unpredictable, and having a solid risk management strategy is crucial for long-term success. Identifying impulse waves and other patterns can provide valuable insights into market direction, but always remember to consider other factors and technical indicators when making trading decisions.
Full disclosure: I covered my short position this morning and am currently waiting for the market to resolve itself before taking any further action. As a trader, it's essential to avoid unnecessary risk and be patient when the market presents unclear signals. Keep a close eye on market movements and be prepared to adapt your strategy as needed. And most importantly, always conduct your own research and consult with a professional financial advisor before making any investment decisions.
Over the course of Friday and the weekend, SPX futures experienced a considerable incline, followed by a slight correction. From the low at the Europe open, it appears that a 5-wave impulse has completed, and based on the subsequent rejection, we may be looking at a downward move.
Before I go deeper, let's take a moment to explain impulse waves. In Elliott Wave Theory, impulse waves are the building blocks of market trends. They consist of five waves, with waves 1, 3, and 5 moving in the direction of the trend, while waves 2 and 4 are corrective waves that move against the trend.
Returning to my update, I have a downside target for SPX futures at around 3985, but if the decline occurs more quickly, we could see a drop as low as 3970. This would correspond to a touch of 3950 on the cash SPX index.
If my interpretation is accurate, SPX futures should be completing a wave A, which would imply another upward move before descending towards our target. It's still too early to confirm this scenario, but we should see resolution within the next couple of days. If we reach the downside targets of 3970-3975, I expect a subsequent move back up to roughly 4020-4050.
It's important for new traders to understand that market conditions can be unpredictable, and having a solid risk management strategy is crucial for long-term success. Identifying impulse waves and other patterns can provide valuable insights into market direction, but always remember to consider other factors and technical indicators when making trading decisions.
Full disclosure: I covered my short position this morning and am currently waiting for the market to resolve itself before taking any further action. As a trader, it's essential to avoid unnecessary risk and be patient when the market presents unclear signals. Keep a close eye on market movements and be prepared to adapt your strategy as needed. And most importantly, always conduct your own research and consult with a professional financial advisor before making any investment decisions.
CE - BitDoctor
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CE - BitDoctor
Access our private indicators and join our Premium Room: bitdoctor.org
Beware of scams - I'll never DM you asking for funds.
Access our private indicators and join our Premium Room: bitdoctor.org
Beware of scams - I'll never DM you asking for funds.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.