Market Still Over Support

Over the long weekend, the market continued to push higher in a very sloppy pattern but managed to push to new highs. This is making the green count the more likely path at this point in time. With that said, I am still leaving the white count on the table for the time being. However, from a practical standpoint, it does not make too much of a difference other than how much higher this can extend. The bottom line from here is that we will need to see a break of support below to signal that we have put in even a local top, and until that support breaks, we simply do not have any sort of indication that a meaningful top has been struck.

As shown on the ES chart, the first support below that I am watching comes in at the 7501-7479 zone below. Moving under this level would be a very early signal of a local top, but we still would need to see a further break of the 7409 level followed by a break of the 7351 level to suggest that a larger top in either wave 1 or wave 5 is indeed in place. As long as we are holding over support and we have corrective action to the downside, the market can continue to extend higher toward the 7600-7700 region overhead.

So while the pattern remains quite messy, as it has for the past several weeks, I will simply have to rely on the support levels below and resistance levels overhead to help give us further guidance. If and when we are finally able to move through those levels, it will help give a bit more clarity in the market, but for now this market simply continues to grind higher on what is a very unreliable pattern.