Market Still Holding Support

While we did see some downside action today, price has thus far held even the uppermost support levels, offering no confirmation that a local top has been struck. Additionally, all major indexes continue to show only three waves down off the recent highs, still going us no signal of a top just ut. 

As such, the analysis and support levels outlined in last week’s update remain largely unchanged. I’m still focused on the key price zones below, should those break, we would begin to see the initial signs that a top may be in place. Until and unless that occurs, the potential remains for the market to push higher, despite how extended the current structure is..

I continue to monitor the 5929–5793 support zone closely, along with the structure of any forthcoming pullback. Without a sustained break of that region, and without a clear five-wave decline, this market still retains the potential to extend higher. That said, given the stretched nature of the current count, I remain cautious here. We are likely approaching the final stages of a larger-degree move, one that should give way to at least a notable retracement before setting up for a more sustained advance in the weeks and months to come.