Market Still Consolidating For Breakout

Today, the market took one more attempt early this morning towards breaking out, and failed.  So, I still have two ways of looking at this micro structure.  Yet, the main theme remains the same: as long as the market remains over the 2820SPX region, I am expecting a rally towards 3000 to begin soon.

Currently, the most bullish count has us in a wave 2 of wave (iii), as you can see on the 5-minute chart.   But, that means we should hold the 2850SPX region to maintain this more immediate bullish structure.

Alternatively, a breakdown below 2850SPX opens the door to the bigger wave (2) we have been looking for all week.  And, that larger degree wave (2) seems to be projected to hold the 2830SPX region.

At the end of the day, not much as really changed in the chart, other than the market is taking more time to consolidate before the next break-out phase.  Once the break out finally occurs, I think we will be heading up to the 2920SPX region in very quick fashion in wave 3 of (3) of iii of (iii), which would be the strongest segment of the rally phase.

5min-zoomSPX
5min-zoomSPX
60minSPX
60minSPX
Avi Gilburt is founder of ElliottWaveTrader.net.