Friday's Binary Options, Entry

Friday's binary options trades. The post will be updated throughout the day. Times are New York time. Read the exit post here.

S&P 500 (Nadex:US500) 11:57 a.m. entry: Short the >2110 strike for a $69.76 debit with the index price at $2,115.56.

The chart below shows the Nadex strike price of 2110 posited at the equivalent index market price of $2,118.06.

Click on chart to enlarge.

SPX at 12:15 p.m. New York time, five days 15-minute bars

Using Elliott wave analysis, I counted Thursday's index high of $2,126.65 on Thursday as being the peak of wave 3 to the upside. The index is now in a 4th wave correction to the downside.

A strong reversal to the upside would mean that wave 4 had run its course. A rise above any of the two resistance areas -- $2,119.40 and $2,124.48 -- would be evidence of a reversal. A rise above the peak would be positive confirmation that wave 4 was complete and wave 5 to the upside had begun.

-- Tim Bovee, Portland, Oregon, June 19, 2015

References

My trading rules can be read here.

Elliott wave analysis tracks patterns in price movements. The principal practitioner of Elliott wave analysis is Robert Prechter at Elliott Wave International. His book, Elliott Wave Principle, is a must-read for people interested in this form of analysis, as is his most recent publication, Visual Guide to Elliott Wave Trading. 

Several web sites summarize Elliott wave theory, among them, Investopedia, StockCharts and Wikipedia.

See my post "Chart Analysis: Nomenclature" for an explanation of my method for labeling waves on the chart.

Alerts

Two social media feeds provide notification whenever something new is posted.

• On Twitter: Follow Tim Bovee: https://twitter.com/TimBovee
• On Facebook, Like Private Trader: https://www.facebook.com/PrivateTrader

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

License



All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Based on a work at www.timbovee.com.Tss s ss'ss