This move down has been impulsive: An impulse A wave consisting of 5 waves, a 3 wave B wave back to test 1360, and now we're in the final impulse wave down, the C wave which will finish red wave ii down on the daily chart. Now let's zoom in to a 10m chart to view how this wave ii down has unfolded and how I plan on trading it.
So far I'm counting this as an impulse A wave and we're in the final impulse C wave. This can also count as a completed WXY down where Y=X today to complete wave ii. That is why I bought June IWM and SPY calls today. Going with the impulse count looks to me like we put in 4 of iii with a 5 of iii down to the 1308/10 area to complete iii of C. After that we'll probably get another bounce up to the 1325/28 area before the completion of the C wave. I will be adding to my call collection at 1310 and finally around 1295.
Until next time,