Market Tests Resistance and Holds For Now
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Today we saw the market open lower only to push higher in the afternoon session, testing the 76.4% retrace level of the move down off of the 6/15 high. So far that level has held almost to the penny and turned down, but we still do not have any indication that we have put in any sort of top just yet. This leaves us pretty much where we were yesterday, and if this is going to push higher per the yellow count, we will need to see a break over resistance. If we are going to move lower, we will need to see a break of support below.
Currently, the 76.4% retrace level comes in at the 7579 level just overhead. If we are going to see this push higher per the yellow count, we will need to see that level broken, followed by a break over the 7615 level. Alternatively, if we are going to see the start of wave 3 down per the white count, we will need to see this break back under the 7500 level to start, followed by a break under the 7447 level below. This would then need to be followed up with a break of the low that was struck on 6/25 at the 7356 level below.
As long as we remain between these key pivot levels, we are simply sitting in a bit of no-man's-land and will have to wait for the market to make a decision.
