Looking at the 60 minutes $SPX chart, the bounce assumed to be a corrective move untill proven otherwise. The upper end of resistance cited for wave (iv) of c under the blue count at 2035 $SPX.
We have no indication on the micro to indicate yet of a local top in place, if that resistance holds and price starts to head back down impulsively tomorrow we can view it as the start of blue wave (v) of c with 1960 $SPX as a potential target.
The above 2035 $SPX would start to look too big as a 4th wave, and instead would argue for another b-wave. Here the resistance for red wave b is between 2055 – 2070 $SPX (the .500 and .618 retrace).
In any Case until we see a solid evidence of otherwise, we are not assuming wave 2 has completed yet and believe we still have one more low, this aligns with the weekly and daily momos still bearish gives me some confidence.
What are we doing?
Will the above scenario happens?? Who Knows? having said that we did take some July 8th, 200 SPY Puts for 1.20 as a hedge.
Good Luck..
IKE
