Market Leaves Us Hanging for Another Day
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After moving lower yesterday, today we saw the market move back higher. However, after what looked like a strong open, it faded back down quite quickly. We have since been grinding higher through the afternoon session; however, the structure of that move higher is very sloppy and not typically what we see when the market is ready to make a sustained break higher. In the end, we are left in a very similar position to where we were yesterday, still trading above support and below the previous high. Until we see a break below support or above those highs, we remain stuck trading between the lines and in a bit of no-man's-land.
There is really very little change to the parameters I laid out yesterday, so I am simply going to reiterate what I noted then.
As shown on the ES chart, I have support sitting in the 7548-7485 zone. If we hold that zone and push back over the 7633 level, we are likely following the yellow count, at which point the initial overhead target would come in at the 7800-7920 zone. From there, we would need to continue to hold support as we ultimately push higher into the latter part of the summer.
If we break under the 7485 level and then continue to break back under the 7459 level, we are likely following the white count for the larger wave (c) down. Until we see a break of that zone, however, we still do not have any confirmation that a top has been struck, and the bullish yellow count will remain in play.
