Market Consolidates Over Support
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After moving sharply higher over the past several days, we saw the market pull back today. We are still sitting over key support, and as long as that support holds, the pressure will remain to the upside per the yellow count. Should that support zone break on five waves, then it would open the door to a top per the white count. For now, however, the market pressure remains up.
After a strong two-day rally into the lower end of the wave iii of (iii) target zone, we saw the market pull back into the upper end of support today at the 7743-7662 zone. As long as this zone holds, the yellow count will remain viable, and the pressure remains up under that count.
Should we see a break of that zone on five waves, then the door will open to a top per the white wave (b). We would still need to see further downside follow-through with a break under the 7400 level to confirm that the white count has indeed topped. For now, however, as long as support holds, the pressure remains up.
