Market Still Hovering Over Support
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Today we saw the market open relatively flat and stay flat throughout the morning session. We saw the market drop down towards last week's low later in the session and we are now sitting just over that low. We are still however well over even the upper support level as laid out on the five-minute charts. So while we do still have a full pattern in place we still do not have that initial confirmation that we have indeed put in top.
As I noted last week I am still using the 5406-5365 as the upper zone and I would view a move under that zone as an early signal of a local top. From there I would still want to see a break under the 5340 level followed by a break under the 5233 level to further confirm a top in all of the wave b.
So while the pattern remains full we still need the market to give us a bit more downside action to give us that initial confirmation that we have indeed topped. Until that occurs another push towards the 5512-5553 can not be fully ruled out.
