An alternative target of the SP500 would be 1095'ish. Assuming we have an ABC up off the lows of a few days ago...wave A measures roughly 35 points, wave B measures about 20 points and with wave C being equal to wave A, that adds another 35 points off the wave B low brings us to roughly 1095. This would be an objective area to scale into shorts with an appropriate stop.
Markets have run, with the small caps outperforming...but for all the noise - not much has been accomplished. Below is an update of the SP500 chart I posted earlier. We appear on target to reach the ideal levels in the 1085ish area with this short squeeze rally. There is some minor resistance shown in the chart above those levels as shown by the horizontal levels. The Russell 2000 looks like it wants to reach its potential. I have not included an update for that index as nothing has really changed.
Below is an example of the RTS system (Real Time Swings Advanced system) run on the SSO today. That resulted in a short for around $600 and a long for $1500 for a risk allocation of $500. RTS finds real reversals on any chart type in real time and suggests entry prices, entry stops, trailing stops along with appropriate position sizing for risk management based on the trade potential.
Bearish Rally Signals are being generated...and market structure seems to be complete or in a completion phase. A-B-C bounce has set up nicely on RUT and matches high probability targets. As a secondary potential the same target areas could be met with a 5 wave wedge rather than an A-B-C pattern. The important thing is that we have triggered resistance signals already and it seems do not have that much more upward potential.
Market Cycles caught the move perfectly as you can see form the updated chart. Swing Levels gave us the correct target area for the lows and the End Of Bear Cycle triggered indicating a completion wave was occuring. Bounces to 1080 to 1086 are now on the table.
I use Multicharts Charting and Backtesting Software.
I post high resolution charts made with Multicharts and Adobe Illustrator. Click on chart for a more detailled view.
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