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S&P 500 (Update): Technical Analysis 9th Sep 2017

|Includes: SPDR S&P 500 Trust ETF (SPY)

Summary

Update for S&P since 1st Sep 2017 post

Price indeed fell from the price I had posted

S&P is still in corrective mode and I suggest short-term trading or avoid totally.

Since my 1st Sep 2017 post recommending shorting S&P, price has indeed moved down (the price level shown as I posted was the high). Personally, I had shorted it but lost a major chunk of the profit when it recovers when I failed to take profit. However, that does not invalidate the analysis, just the ineffective trading on a personal level.

Here is the recap of S&P on 1st Sep 2017:

S&P 1st Sep 2017S&P 1st Sep 2017 And this is where we are now:

S&P 9th Sep 2017S&P 9th Sep 2017 The reason why I would recommend short-term trading is because corrective waves are psychologically tiring and prone to whipsaws (especially wave 4). Thus, unless you are already an accomplished scalper, I suggest getting out of ES or SPX or SPY until we are fairly confident that wave 4 has ende (which may take a while yet).

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: As I mentioned in my post, I do not favor trading in corrective waves. Thus until I have a clearer picture or unless the price hits a very favorable level (either horizontal support or resistance), I will not trade this.