Market Still Angling For 7000

As I write this update, I cannot say that I have any strong evidence that the market is not going to attempt a run at 7000 before the end of the year.   

While there is a potential 5-wave decline from last week’s high in place, I want to remind you that a-waves can also be a 5-wave structure in the less common scenarios.  But, if we are going to have something to suggest that we are not going to make a run for 7000, we will need a 5-wave decline at one larger wave degree before I am willing to entertain the potential that we will break down below the (b) wave support box in the yellow count.

Another point I want to highlight is that we have not even broken the micro-support on the ES chart.   

So, for now, as long as the market is not going to provide us with a larger degree 5-wave decline in the coming days, I have to assume that this pullback can still set us up for one more rally before this rally off the April low finally completes.  It has been exceptionally long in the tooth and very stretched, but we still have no clear evidence that it has concluded.

Ideally, I would still like to see us break down below the micro-support on the ES chart and test the (b) wave support box on both charts.  Should that decline take shape as a corrective a-b-c structure, then we can look to the next rally for the (c) wave and likely complete this rally off the April low.