Pressure Is Down For Now

With the market being unable to gain footing to break out higher, it does seem as though we are still stuck in the green wave 4 pullback.  Therefore, I have taken the blue count off the chart for now.

While the micro structure is a bit of a mess  (I know, that is shocking during a 4^th wave), it would seem that as long as we remain below today’ high, pressure will remain down.  Of course, wave 4 can end at any point, and if we see a CLEAR 5-wave rally over today’s rally high, then I have to assume that wave 4 is done, and we are starting wave 5 of iii to the target box overhead.

While I have placed a micro count on the 5-minute chart, I have several issues with it.  First, the wave i down relies upon a leading diagonal, which are not strong trading cues to me.  Second, the fullness of that i-ii downside structure is pointing a bit below the pivot, which does make me question this a bit more.

So, in very simple terms, as long as we remain below today’s high, then pressure will remain to the downside until the next 5-wave rally structure makes its appearance to signal the start of wave 5 of iii.  And, alternatively, a sustained break of a support from this point forth would open the door for the red count.