Right Back Where We Started
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After opening slightly higher, the market dropped sharply this morning, only to recover that entire move and more as we head into the close. While price did dip below the very upper edge of support noted in yesterday’s update, we remain well above the key micro support zone at 6185–6135. So once again, until that zone breaks, we do not have confirmation that a top has been struck.
That said, we continue to track a very full and extended wave count, so I remain cautious on further upside in this region.
From a very micro perspective, we may have a potential initiation move in place. As long as price holds beneath the 6331 level, there’s room for further downside. However, the structure is far from clean and does not offer the most reliable setup for continued weakness. The key pivot remains the 6185–6135 zone on ES. Until that zone is broken, I cannot rule out the potential for higher levels before a more significant top is confirmed.
