Pullback Leading To Higher?

With the current pullback we are seeing, we have turned down where a traditional a-wave would do so. And, that remains my primary wave count for now.

That means that as long as this pullback remains corrective, and we hold the support region noted on the 5-minute ES chart, I am expecting another rally in the coming days for a c-wave of the (b) wave.

There are some qualifications within that last statement. First, we must hold support. Should we break support, especially if we do so impulsively, then the (b) wave may be completed already. But, the decline thus far is not looking terribly impulsive, and counts better as a corrective structure. Moreover, the MACD on the 60-minute chart has more room to the upside before it strikes the resistance box. So, I am maintaining an expectation for a c-wave rally.

The second qualification is that I am still forced to track the green count, as we did not break support at 7237SPX to invalidate this path. So, we are going to have to track both paths over the coming week before they diverge and one becomes the clear path to a very high probability. At this time, I am assuming that will be the red count, but I am keeping an open mind, as this market has not been kind to the short side for many years.