Market Continues to Grind Higher
By
The market opened higher today, pulled back early in the session, and then pushed higher into the close. We have yet to break even the upper-most support levels, and both ES and SPX still present what does look like incomplete patterns to the upside on the micro-degree. While a short-term pullback is certainly possible in the days ahead, as long as we remain above key support, we do not yet have a signal that any significant top has been struck. In fact, the structure would look more complete with at least another fourth and fifth wave to finish off the move to the upside.
On the ES, I’m currently watching the 6453 level as upper support. A break of this level would suggest that micro wave iii has topped. Should that occur, I’ll be focusing on the 6420–6382 zone as key support for a potential wave iv in what is shaping up to be an ending diagonal to complete wave 5 off the 6239 low. As long as that zone holds, another fifth wave higher toward the 6525–6600 region remains in play.
However, a break of the 6382 level would be an early indication that a local top may be in place. In that case, my focus would shift to the 6239–6151 region as the next major support/pivot zone. That zone would need to break to confirm a larger-degree top, but for now, despite the sloppy and overlapping nature of the current price action, we have no clear evidence that the top has been struck.
