How About That Weather We Are Getting?

Yea, I know the title has nothing to do with the market, but there really is nothing much for me to update about the market action. 

First, the SPX is still over 3115SPX support.  Second, while it has probed deeper today, the IWM is also over its relevant support of 138.50.  And, until those levels are solidly broken, I cannot yet adopt an immediate bearish perspective, especially since the decline in the SPX, thus far, has been quite corrective.

However, what I can add is a possible leading diagonal count as shown on the attached ES chart.  But, I just don’t have a clean way to count it as completed yet, and it would look better with a lower low.  Even so, since it would only count as a leading diagonal, I would still need to see a break down below 3115SPX to have more confidence in its potential.

In the end, I am sorry to sound like a broken record, but as long as the market remains over 3115SPX and 138.50IWM, I have no signal yet that we have a bigger drop developing just yet.  Rather, it still retains bullish potential in blue until those supports are broken.

5minES
5minES
5minMicro
5minMicro
60minSPX
60minSPX
3minIWM
3minIWM
60minIWM
60minIWM
Avi Gilburt is founder of ElliottWaveTrader.net.