On Track To 1760-1780?

Clearly the Fibs told the story yesterday that the bottom was in, and with the break over 1666ES, it made it quite clear.  So, with this break out, I can now count 5 waves off the low, which means that if and when we see a 3 wave corrective decline into the 1666ES break out region, you can have another opportunity to go long for the higher targets we still have.

But, despite all  the bullishness that everyone is feeling right now with this strong reversal, it does not change the fact that we are likely heading into a very dangerous topping pattern a bit higher.  In fact, the goal of this 5th wave rally is to elicit as much bullishness in the market as possible, with thoughts of the market powering through the 1800 region.    But, please maintain your composure on all your trades, and even consider exiting after wave 3 higher has completed.  But, as always, please practice risk management as we move up into the danger zone.

Avi Gilburt is founder of ElliottWaveTrader.net.