FINANCE moving average




Still bullish on S&P 500, but rough month ahead

June 11, 2018
7:30 AM
By: Chris Guthrie

The SPDR S&P 500 ETF (SPY) has been relatively predictable when applying some Elliott Wave Theory principles. While we are in the final stretches before we hit a major correction, a smaller one is on the horizon. The pull back will not be much, but jockeying for position is not bad.

The index should find a top around June 14 around 2791.91. This will be followed by a drop over the next 1-3 weeks. My projection has the bottom most likely between 2670 and 2740 based on typical wave 2 pull backs. I am leaning between 2700 and 2733. After this bottom, I expect major upward movement through early to mid-September. We could test 3100 during this final rally.

When projecting moves based on wave theory, I try to also identify real world items that could be cause for these moves. June 14 coincides with the end of the US-NK summit, Fed policy decision, and looming trade conflicts between the US, its allies and China. What ever the case may be, I am positioning for this pending drop and ready to ride the final wave 3 high into September.

SPDR S&P 500 ETF Chart From

DISCLOSURE: We currently have a 274 put options with a July 20 expiration. We may initiate another position in the next 72 hours. This article is for reference only and should not be solely relied on to predict future movement. Historical movements and technical indicators should never be the sole basis for entering positions involving risk. You should not take a risk without fully understanding the system, market, and having established trading discipline. Make sure appropriate research is conducted prior to taking any risk in a marketplace. The author and Limitless Life Skills LLC do not have a financial relationship with the companies mentioned in this article and all expressed views are that of the author.

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