Overlapping Into The High

With the market pushing higher towards the 3110/15SPX resistance today, the structure has become quite overlapping.  That often suggests that this move higher may be completing as an ending diagonal. 

However, as we have discussed over and over, until the market actually breaks support, we have no clear indications a top has yet been struck, despite our expectations for one to be struck.

Upper support now resides in the 3080 region, but we still need to break down below 3060/65 to open the door to a test of the 3020/30 support below.  And, as long as we remain over the 3080 support, the market can continue to overlap higher towards the 3110/15SPX resistance.

In the bigger picture, nothing has really change.  We still need to break down below 3020/30SPX to signal that a larger degree pullback is underway.  And, the shape of that break down below 3020 will tell us whether we can maintain our downside target for the [c] wave box on my chart, or if we may have to consider one of the other alternatives we have to discuss. 

Avi Gilburt is founder of ElliottWaveTrader.net.