S&P 500 (Nadex:US500) 11:56 a.m. entry: Long >2110 for a $70.50 debit with the index price at $2,121.18.
S&P 500 (Nadex:US500) 3:29 p.m. exit: Long >2110 for a $94.00 debit with the index price at $2,123.49.
The chart below shows the Nadex strike price of 2110 posited at the equivalent index market price of $2,117.91.
Click on chart to enlarge.
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| SPX at 3:40 p.m. New York time, 1 day 1-minute bars |
The Elliott wave analysis shows wave 3 to the upside underway as the day opened. Upon entry I noted that a decline below the $2,119.97 market price, marked with a yellow oval, would suggest that wave 3 may be beginning a retracement to the downside.
And indeed, the price did drop below that level in a shallow pullback from the peak. Going forward, a beak above $2,126.65 will mean that wave 3 to the upside is still in progress. A decline below $2,118 will suggest that a downward correction is in progress, perhaps wave 4 or perhaps a correction internal to wave 3.
And indeed, the price did drop below that level in a shallow pullback from the peak. Going forward, a beak above $2,126.65 will mean that wave 3 to the upside is still in progress. A decline below $2,118 will suggest that a downward correction is in progress, perhaps wave 4 or perhaps a correction internal to wave 3.
-- Tim Bovee, Portland, Oregon, June 18, 2015
ReferencesMy 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.
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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
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