SPY Elliott Wave

Options expiration days are hard to trade, and I usually stay away unless something interesting develops. Today, we formed a very nice Elliott Wave that created some trades that might have not been obvious otherwise.

Once that big 3rd wave shows up, the trades become clear. A short on that doji candle right on the 200 SMA (near the number 4) with a stop right above the 50 EMA could have resulted in a nice gain as you rode wave 5 down.

These patterns happen so regularly, that it really develops a trading edge that is hard to beat.