Market Still Hovering Near The Highs

Today the SPX is trading slightly higher but overall very flat from the close yesterday and we are still trading within the topping zone for the potential wave i in green and wave a in yellow. 

From a structural perspective, there still is very little change to the count on the ES since yesterday and really last week when we pushed higher and completed a potential five up off of the lows. This push higher has put us on the lookout for the next pullback which should provide us another buying opportunity in the equity markets.  From here I am now looking for a break under the 4255-42475 zone as shown on the ES chart to give us an initial signal that we have indeed topped in that wave i/a Breaking that level would then allow for a corrective move lower for the wave ii/b down towards the 4228-4189 zone again providing us with another buying opportunity.

While certainly not my expectation at this time I do want to layout the more immediately bullish path should we not see a local top in this region. Should we see this continue to breakout higher and move directly through the 4298 level followed by a break over the 4318 level, then we may already be in wave iii up per the green path or c up per the yellow count. This does not change the overall counts on the bigger picture timeframes but rather would shift where we project our near-term Fibonacci price targets.  

So with that and until we see the pullback for the wave ii take shape on the SPX we really are still positioned in a very similar spot that we were yesterday and last week. We should however really start to see that pullback take shape this week if it is indeed going to occur as we are starting to run out of room overhead for this to continue to push much higher.

ES 15m
ES 15m
SPX  60m
SPX 60m
Michael Golembesky is a senior analyst at ElliottWaveTrader covering US Indices, the US Dollar, and the VIX. He contributes frequently to Avi's Market Alerts service at EWT while also hosting his own VIX Trading service.