Last Chance To Hold As Market Tests The Lower End Of Support
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Today we saw the market continue to push lower as we are now testing the lower end of support for the potential wave (iv) per the yellow count. If the market is able to hold around this region and turn higher on five waves, then we still can see this continue to push higher. However, a break of support here would open the door for a larger degree top to be in place for the white wave (b). So with that, the next couple of sessions should tell us a lot about where the market is headed over the next several months and potentially into the end of the year.
As shown on the ES chart, the yellow bullish count still remains very much in play here as long as we can hold over the 7662 level, and really I can allow it to move as low as 7620 without invalidating. If we are able to hold this region and then turn higher on five waves, then the yellow count higher still will have a very viable chance at playing out.
If we break that zone or see the action to the upside take three-wave corrective wave action, then it is more likely that we have put in a larger top per the white wave (b) and are likely heading lower in a larger degree wave (c) for the next several weeks before finding any sort of significant downside relief.
So this remains a very critical support/pivot region, and what happens over the next few sessions is going to be very key, so this is not a region to become lackadaisical about. For now, I will continue to monitor how we progress and will plan my setups appropriately once the market gives us further confirmation as to which direction it is likely to head.
