S&P500: Possible 200 Points Drop At Hands

Aug. 26, 2019 4:41 PM ETSPDR S&P 500 Trust ETF (SPY), VIXYSPXL, SPXU, SPXS
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Contributor Since 2015

Rajesh Srivastava is the Founder of priceSeries, an automated stock analysis company based in Silicon Valley. Rajesh has been an active equities and options trader in US markets for over 20 years. He has been following Algorithmic trading since it's inception and has been researching on building successful trading models. Rajesh has lived and worked in Silicon Valley for over 25 years. Prior to founding priceSeries, Rajesh has held several engineering and management positions at Hewlett Packard, Symantec Corporation, and Intel Security. Rajesh specializes in Data Networking and Security, he holds a bachelors degree in Electrical Engineering and an MBA in Marketing Management.

Summary

  • A Bearish Wolfe Wave pattern has been created on Monthly SPX.
  • The expected low levels range from 2685-2670.
  • The index closed at 2878.4 on Aug 26, 2019.

S&P500 - possible drop by 200 points by priceSeries

A bearish Wolfe Wave pattern has been generated on Monthly SPX. Notice how cleanly the points 1-5 have formed. Points 1-3-5 fall in a perfectly straight line while the point 4 extension remains lower than the extension of point 2. Overall a perfect Inverse Wolfe Wave.

At the time of writing this post, SPX was trading at 2871.7. The SPX is expected to hit a low around point 6, approximately 200 points below the current level.

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a short position in SPY over the next 72 hours.

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