Market Still Trading Between the Lines
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Today the market moved lower, which is keeping both counts in play as we head into the final hour of trading. We are currently sitting just over the 100% extension of the initial move down off the high and the larger support zone below. If we manage to hold over that zone and push back over the 7633 level, then we are likely following the bullish yellow count, whereas a break of support below would give us initial confirmation that we have topped in the white wave (b). For now, we simply have to wait and see what the market decides, which we will likely have an answer to within the next few trading sessions.
As shown on the ES chart, I have support sitting in the 7548-7485 zone. As noted above, if we hold that zone and push back over the 7633 level, we are likely following the yellow count, at which point the initial overhead target would come in at the 7800-7920 zone. From there, we would need to continue to hold support as we ultimately push higher into the latter part of the summer.
If we break under the 7485 level and then continue to break back under the 7459 level, we are likely following the white count for the larger wave (c) down. Until we see a break of that zone, however, we still do not have any confirmation that a top has been struck, and the bullish yellow count will remain in play.
