Another Day of Consolidation
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Today was almost a repeat of yesterday however instead of opening slightly down and then consolidating we saw the market opening slightly up and then consolidating all day. So with that, there still is very little I can add to today's update as the market has simply not moved very much and we remain over upper support but below last week's high. I will re-iterate the parameters that I am watching but again not much has changed with today's price action.
As I noted yesterday upper support remains in the 5222-5205 zone. This is the ideal spot to hold to keep the very near-term pressure up under the yellow count. Assuming we can hold that zone then the next target overhead comes in at the 5250-5279 zone. From there we still should see a consolidation for a wave 4 followed by a wave 5 push higher to finish off the wave (c) of iii. Once we top in the wave iii I would expect a deeper pullback for the wave iv towards the 5150 area.
If the market is unable to hold over the upper micro support at the 5205 level then it would open the door for a local top to be in place. We still would however need to break back under the 5131 level followed by a break under the 5090 level to give us a signal that we may have put in a larger degree top in either all of the yellow wave iii or perhaps all of the wave 5 in purple.
It would take a break under the 5053 level to further confirm a larger top in the purple wave 5 but as long as that level were to hold we still could see another higher high as part of the yellow wave v even if we begin to break under the 5090 level below.
So while the larger degree pattern off of the February lows remains a bit sloppy, bigger picture we remain in the larger degree topping region and thus caution still remains warranted. We do however still need to see a break of some of the support levels noted above before we have any signal of that larger degree top. So for now we will continue to monitor the parameters as they are laid out as the market continues to grind its way higher.
