US30 - SELL IDEA

The US30's recent chart formations, analyzed purely through Elliott Wave principles, highlight a compelling setup for a potential short. We've seen the completion of the motive Wave (5), indicating the end of a typical five-wave advance. This suggests the market might now be entering a corrective phase.

As we transition from Wave (5) to Wave (a), it's clear we are in the early stages of a corrective ABC pattern. I anticipate Wave (c), typically a strong downward move, to push the market lower, offering a strategic opportunity for shorts. Given this scenario, a conservative target for Wave (c) could be the last minor low preceding Wave (a), which can serve as an initial profit-taking point.

Considering entering a short position at current levels could be prudent, aiming to capitalize on this anticipated pullback. Placing a stop-loss slightly above the peak of Wave (5) would help manage risk effectively.

Watch for confirmation of downward momentum and adjust your trade management as the pattern develops. Remember, discipline and proper risk assessment are key in capitalizing on these wave-based movements.