2196 almost reached - Market Analysis for Aug 15th, 2016

The market churned higher today, getting closer to the 2196 SPX fib target above. Despite this further extension, my expectations remain the same for now, and still believe we are approaching a local top in this region as wave i of 3, which should yield a corrective pullback in wave ii of 3. Price has to take out Friday's low followed by 2172 SPX in order to signal that a local top has been struck though, after which I will be looking for at least a retest of the 50 day SMA before wave ii completes. Beyond that there is not much else to add though with another relatively slow trading day...

$SPX - Micro - Aug-15 1324 PM (1 hour)
$SPX - Micro - Aug-15 1324 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.