Market Still Refuses to Provide Much Clarity

Today the market moved higher only to move back lower in the afternoon session. That move up and then back down left us with three waves off of yesterday's low, so we still do not have confirmation that a bottom is in place for all of wave b. The move down off of today's high also counts best as three waves on the smaller timeframe, which does not yet confirm a local top either.

This leaves us trading in a bit of no-man's-land on the smaller timeframes. With that in mind, I am going to focus on the larger support and resistance zones and use the price levels within those areas for guidance as we wait for the market to break free of the range it has been trading in for the past several weeks.

The key resistance zone overhead remains 7791-7803. As long as the market remains below that zone, I still think the cleanest count calls for a deeper retrace for wave b into the 7678-7600 region below. If we break over 7803, followed by a break over 7815, it would be more suggestive that we may have bottomed in all of wave b and begun wave c of the larger wave (v) up.

I do want to caution that this read is based primarily on the larger pattern, as the smaller-degree subdivisions are not providing strong support for either path at this time. This makes the near-term count less reliable.

For now, I will continue to stand aside and watch the parameters laid out above, allowing the market to provide better evidence as to which path it will ultimately follow.

The larger-degree counts remain unchanged at this point in time.