SPX500 completes a Wave 2 flat around 3165. Look lower.

3 lug 2020

SPX500 might have completed the corrective rally that had begun from 2965 since June 15, 2020 yesterday. The indice rallied through 3165 before reversing lower again. The probable wave counts are as follows. The drop from 3230 through 2965 could be labelled as Wave 1, which was followed by a corrective flat that finally terminated at 3165 yesterday, Wave 2. If the above counts are correct, SPX500 should ideally stay below 3165 and resume lower towards 2750 and 2530, going forward. The larger degree wave counts are as follows: The primary drop from 3400 to 2200 is Wave (1), followed by a corrective rally towards 3232, Wave (2). If the above holds SPX500 is set up for a sharp reversal lower.

Remain short, Stop @ 3300, target @ 2750, 2530 and further.

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