This index is one of the more cleaner markets and showing a potential impulse wave (5 wave advance) from the Dec 2018 lows, whilst many other sectors and US stock markets have lagged this index, the clarity of this particular index, actually highlights a potential setup for a reversal and an opportunity for those that want to bet on a potential decline.
The recent gyrations over the last few days appear to be showing a possible bearish wedge. Elliott wave users call that an ending diagonal, it’s a common pattern that is seen in a 5th wave of an impulse wave. A strong move below $36.00 – 35.50 would be the first clue to supporting a move lower.
I came across an ETF that may be of interest to those that are interested in participating on a decline for XLRE. As XLRE moves lower, the ETF called DRV would move higher. If a peak is setting up for XLRE, then this could be a great opportunity to capitalize on a decline on XLRE.
If you do not fully understand how the 3x leveraged ETFs work, then I strongly advise against purchasing DRV. Please do your due diligence.
Do you have a stock that you want evaluating? Purchase a consultation call and get an independent review through the lens of Elliott Wave. With the US stock markets vibrating around the previous all-time highs, it may be prudent to think about protecting any gains you have.
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