Breakout Under Way - Market Analysis for Apr 23rd, 2019

After consolidating under resistance for several days today, we saw a sustained break of the 2915 level on the SPX which is now making the yellow count much more likely. This breakout opens the door to see the SPX continue to move higher up towards the 2964-2995 zone for wave 3 and potentially into the mid 3000s before topping in wave 5 of (c) of the larger degree wave b. 

We do now have relatively straightforward price levels to watch from as the move up off of the 3/8 low is so far following an impulsive wave structure. With today's move up over the 100 ext at 2915 and into the 123.6 extension, we should now hold 2915-2884 zone this is indeed going to follow-through to those higher price targets per this yellow count.

A break down below this 2915-2884 zone support zone would signal that we are not following through on an impulsive path higher and open the door to a top occurring prior to seeing a move up over the 3000 area. We still would need to see further follow-through with a break back below the 2865 level to give us additional confirmation of a top, however, unless and until that were to occur then the pressure will continue to remain up on the SPX in the near term.

SPX 60m
SPX 60m
Michael Golembesky is a senior analyst at ElliottWaveTrader covering US Indices, the US Dollar, and the VIX. He contributes frequently to Avi's Market Alerts service at EWT while also hosting his own VIX Trading service.