Purple May Be Taking Control

In the weekend update, I outlined two paths that could be pointing us higher in the coming weeks.  And, with the market breaking down towards the 5930ES region overnight, we seem to have bottomed just at that level, and have moved through the pivot today.

As I am writing this update, the market seems to be attempting a 5-wave rally.   While the initial move off the low in ES is not the cleanest of initial 5 wave move, if the next pullback is clearly corrective, we will likely have to move into the purple count in the coming days.

So, I am trying to keep an open mind as to how the market is going to attempt to move higher.  If the next pullback is clearly corrective, then I will have to assume we will be heading higher sooner rather than later in the purple count.  If the next decline is clearly impulsive, then I will look at this move as just a larger than usual wave iv.  And, we will need to break below the overnight low to confirm that we are heading down to the target/support box below.