Market Needs a Defibrillator

Today we saw more very tight sideways action, with the market trading in a very tight range, and clearly we have not made it out of the summer doldrums just yet. There is really very little that I can add to the previous updates as we continue this very slow action into the middle of the week.

Ideally, I would still prefer to see a bit of a push higher in at least a larger wave 2, as shown on the ES chart, and for the yellow count to become likely, we would need to see a clear five-wave move to the upside. As long as the action remains corrective to the upside, however, my base case will remain for a downside resolution.

For now, I will continue to sit tight and wait for the market to resolve what remains very tight and slow action.