5 Up Puts Bulls Back In Control

With the market moving higher today, it gave us a nice 5 waves up from the Bradley low at 2072 at the bottom of our support region.  This has me viewing this market very simply at this time:  as long as we remain over this week’s low, the market is bullish; however, should this week’s low, then I will likely embrace the potential it has topped already.

For now, we are looking towards the 2104SPX to break to signal that wave 1 has completed.  Once we break 2104SPX, then I will be looking for a bottoming in the target box below for a wave 2, which could happen as early as tomorrow.

And, again, I want to stress that as long as this past week’s low holds, and, in fact, I don’t want to see us even approach it, then we have to view the market from a bullish perspective.  Furthermore, due to the size of this potential wave 1, I have moved our target up for a full 5 wave move to the 2170-80 region, which potentially can complete around the time of our next Bradley turn, which is early July.  Once we know how deep wave 2 drops, then we can set targets much more accurately.

BaseCase - 1TurnChart
BaseCase - 1TurnChart
Avi Gilburt is founder of ElliottWaveTrader.net.