Termination of Wave 2 before Wave 3 up

I had to slightly alter my count based on the price action recently. The move up to 1370 seems to only have completed wave 1 up of the ending diagonal, with wave 3 up to 1390 to follow. After the I'll be looking for completion above 1400. Here's is my updated daily chart of the SP-500:

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,

geno0010

The

Trader