SPX500 ready to crash towards 1750 levels ?

SPX500 has carved a neat lower high around 3230 levels over the last week. By the end of the week it has presented an Engulfing Bearish candlestick pattern, indicating a high probable bearish reversal on the way. Two major theories confirm the bearish structure as well. 1. According to The Elliot Wave Principle SPX500 has carved a classic 5-3 pattern since 3400 highs in February. Ideally, a 5-3 pattern should be followed by another 5 wave movement towards the major trend, which is down. 2. The conventional Head and Shoulder bearish reversal pattern has now confirmed the formation of the Right Shoulder after 3230 highs. The next move should be a sharp reversal lower towards 2200 and beyond. Either way, SPX500 remains bearish against 3400.

Strategy:

Short against 3400, targeting below 2200

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