Market Consolidates Under the Pivot All Day
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Today we saw the market open slightly higher and consolidate in a very tight range all day, just under the key pivot that, once broken, would confirm we are indeed in wave c of the larger (b) up. As of right now, we still do not have confirmation that we have indeed begun that c wave up, and we still could see a deeper retrace before that move occurs. For now, we will remain in a bit of a wait-and-see approach as we continue to hold below the key pivot.
As I noted this morning, the pattern is far from perfect, but as long as we remain above the 6450 region below, it does look like we have put in a bottom in wave (a) per the white count. I am still not sure if we have already bottomed in all of wave b; however, with today’s high consolidation, it is looking more likely that this is the case. We would, however, need to hold over the 6539 level for this more immediately bullish path to remain the likely outcome.
We would then need to see a break through the pivot overhead at the 6687–6732 zone to further confirm that we have already begun wave c of (b) up, at which point the 6803 level will act as the next key overhead resistance level. If we can get through the 6803 level, then the 6875–7036 levels will become the next key overhead resistance zone.
If we move back under the 6539 level, it would open the door to a deeper wave b before any larger bottom is found in that wave. At that point, I would again be watching the 6450 region below as support to hold as part of the larger wave b. If we break under the 6540 level, then it would still leave the door open to the green count and seeing one more lower low, but again, with the action we have seen over the past few days, this path is becoming less probable.
