I have being looking into the Gartley concept lately. I think it's rather complex, but having a succes rate near 70% for the "222" as the Gartley Butterfly is also called is pretty amazing.Therefore I will give it a go with the S&P 500. We are looking at a bearish Gartley butterfly. The first demand is, that the top of X isn't broken, that means any break above 1,219.61 will destoy the formation. In an ideal Bearish Gartley a maximum of 88.6% of X to A will be seen. At 1.195.99 88.6% of XA was seen, at the top until now has been 1,196.20 - That should be within the margin of error.
There is no trigger point for the fomation as i have read it (If you disagree or know anything about a trigger point, please let me know). Therefore one should try selling as near the top as possible with at stop just above 1,219.61. (If one sold at yesterdays close the would equal a 3% stop-loss - Not bad).
The target for the formation if fulfilled will be in the 747 - 748 area.
The possible Bearish Gartley will be in line with the possible Diamond topping pattern I have described lately (see the chart below)
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