SPY ETF: Wave ii pullback finds more buyers in blue box
|Hello Traders, in this article we will analyze our forecast for SPY ETF in the short term cycle. Since the short term peak of SPY from 05.30.2023 to end wave i of (iii) we have been expecting a pullback within wave ii to take place. Thereafter, we were expecting more upside within wave iii. Here at Elliott Wave Forecast we have in place a system that allows us to measure an area in which we can expect a react to take place.
We call it equal legs area or blue box area as you might have seen within our charts. These areas provide us with at least an 85% chance of a minimum of 3 waves bounce or reaction to take place. We can use these areas to enter in the market with a defined entry, Stop Loss and exit strategy. So once we had in place a and b of ii we were able to present for members the blue box buying area in which we expected to end c of ii.
We teach how to use our system within our member’s area and live trading room. Once a member or in trial you will be able to gather more of that information under your disposal. Nevertheless, let’s have a look now at the 30 min chart of SPY as provided to members from 05.31.2023. We have been expecting more downside to reach the blue box area before turning higher.
SPY 30 min chart Pre Market Update 05.31.2023
As we can see the market was expected lower within c of ii to reach the blue box area. We recommend members to always buy from the 100% extension area with a stop loss just below the 1.618 area. Fast forward, towards the latest post market update now from 06.06.2023, we will see that the market has already reacted higher and what we expect next.
SPY 45 min chart Post Market Update 06.06.2023
A strong reaction higher took place from the blue box area. The reaction higher within wave iii of (iii). And then expecting the pullback within iv before one more high in v to end (iii).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.