Asaadx2

Possible low-risk short trade

Short
FOREXCOM:SPXUSD   US SP 500 CFD
Note break of lower parallel of the well-validated blue pitchfork after multiple bearish divergences, indicating the first leg up is over at the 50% retracement . This can be counted as a zigzag .

A low-risk short trade is possible here with a stop just above the recent high at wave C. Need to watch the orange pitchfork and lower our stop loss along its upper parallel. If price breaks its upper parallel then more upside is likely, and we would need to consider the possibility of a double zigzag or nested 1-2, 1-2, and revise the wave count accordingly

Note that the move down off the high has been counted as an impulse with an expanding leading diagonal , although this can also be counted as a zigzag corrective structure and allowing the possibility for more upside.

I think the pitchforks should help guide us here
Trade closed: stop reached: Although price did go down a bit, it did that in 3 waves and then went sideways forming a triangle. Stop was hit when price breached the orange pitchfork and I took a small loss. However that allowed me to switch to the bullish scenarios that I mentioned, initially considering the possibility of a double zigzag as in this chart. If it takes the high at 2894 off then I'll consider switching to the more bullish scenario of nested 1-2, 1-2