Market Sees A Deep Retrace But Catches The Lower End Of Support
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Today we saw the market move sharply lower, but was able to find support at the lower end of the key retracement level before we headed into the final hour of trading. If we can manage to hold today's LOD overnight and into tomorrow, then the door will remain open for this to push higher in a wave iii of larger waec (c). We still will need to push through the micro pivot, which sits just overhead, to give us initial confirmation that we have put a bottom in place, but the reversal right at key support is certainly a good start.
As shown on the ES chart, I am watching the 6935 level as the first initial pivot level to give us confirmation that we have indeed put in a local bottom. If we can break through this level and follow that up with a full five up off of the lows, then it would give us an initial signal that we have indeed put in a local bottom. From there, the 6994 level will act as the next key price pivot/resistance level that I would want to see broken to signal that we are indeed heading to new highs.
If we are unable to get through those levels and push back under today's LOD, then it would open the door for a larger top to be in place, but unless and until that occurs, I still am leaning toward this pushing to new highs.
