Market Closing In on Upper Resistance
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Today the market continued its grind higher on what remains sloppy action as we approach the upper end of the resistance zone, still keeping the potential wave 2 alive. If we continue to push higher and break resistance, it will make it more likely that we are following the yellow count over the 7646 level before seeing even a local top.
Overall, there really is not much change to the counts as they have been laid out over the past several days. With today's push back over last week's high, we have invalidated the potential 1-2 i-ii setup to the downside and are now closing in on the larger upper resistance zone at the 7614 level for the larger wave 2. If we break that level, then we are likely heading higher as part of the yellow wave (b).
If we manage to hold under the 7614 level and turn back down under the 7477 level in five waves, then it would give us an initial signal that we are indeed heading lower in wave 3 of larger (c) down. This would need to be followed up with a break under the 7352 low. For now, however, let's see how we react at the resistance, which comes in just overhead at the 7614 level.
