Quick Review OF Levels

Let me outline the plan here, so everyone can get this straight in their minds and it should clear up any confusion.

My PRIMARY perspective is that I really want a 5th wave higher to complete wave v of 1, as you can see outlined in my blue box at the top of the SPX chart.  In order to maintain that expectation, we SHOULD HOLD 3880SPX.  

Below 3880SPX I may have to consider a very unusual top for wave 1 - shown with the blue 1.  Should we break below 3880SPX, then the blue box for wave 2 has a main support of 3775SPX, which is the .618 retracement of the blue wave 1.  So, the second step is that - in the event of a break of 3880SPX - then the 3775-3840SPX region is our main support for wave 2.

And, again, for those very bearish amongst us, should we break 3775SPX, then it would be much more likely that wave (2) in yellow has not yet completed.  

So, please recognize the step by step approach we have to take here, until the market provides us with the 1-2, i-ii break out scenario for wave 3 that I have been outlining for weeks. 

5minSPX
5minSPX
Avi Gilburt is founder of ElliottWaveTrader.net.