Have We Finally Topped in Green 3?

With the manner in which the market dropped today, and without hitting the 1.618 extension, the market has left a door open to another rally to be seen in an expanding diagonal, which is somewhat rare.   However, if the market can break down below the 1752ES level, which is the 1.00 extension of today's decline, then it becomes much more likely that the wave 4 is in progress.  And, as I have said over and over, a break down below 1726ES will signal that the market has topped, and my next target is the mid 1600's.   But, let's not count our chickens just yet, as we need a drop below 1752ES now, or else we will see another high.

Avi Gilburt is founder of ElliottWaveTrader.net.