Yesterday's trade Alert suggested an initial short portion below SPY 430.50, which has not yet been broken. As is illustrated on this SPY chart, once 430.50 is broken price will head toward the June low @ 415 and then toward the May lows @ 405-400. This cascade lower will begin when an if Tuesday's low of 30.50 is broken, BUT NOT UNTIL. Strategy-wise, going out to August gives this scenario 45 days to unfold, while going out to September expiration gives 73 days. Sell Signal Pending: SPY break below 430.50 (any time) Options: Aug 17th or Sep 20th SPY $415P TSLA There is a lot of "stuff" going on in this chart below, but suffice it to say that from an intermediate term perspective either TSLA has started a Wave 5 up toward $1,200 later this year, or Wave 4 (A-B-C) needs one more drop below $600 to complete. A 38.2% retracement of the entire 2019-2021 rally is at $585 (where the Wave 4 is shown on the chart), while a 50% retracement is sitting at $487. This scenario would likely be part of the S&P breakdown discussed above. The $2,400 target for 2023 is on track whether the Wave 4 low is in or not.
