4th wave flat - Market Analysis for Dec 28th, 2016

The market turned lower today, and while we expected that this 4th wave was still in progress, it has now morphed into a flat structure rather than the previous triangle that we were tracking before. The triangle invalidated when price was unable to hold last week's low, opening the door to a move back down near the December 14th low as the C-wave of a flat structure for wave iv.

Main support that I expect to hold is now at roughly 2241 - 2238 ES, so we could easily see another (4)-(5) tomorrow before this C-wave completes and a bottom is struck as wave iv. Otherwise a move back above 2258.50 would be needed to start indicating that wave v of (iii) has already started.

ES H7 - Micro - Dec-28 1321 PM (1 hour)
ES H7 - Micro - Dec-28 1321 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.