SPX Extending Higher & Still Trading Over Support

Today we saw a continued move higher of what I am still preferring to count as an extended wave (iii) of v up off of the 1991 low. This leaves the analysts as posted at the close yesterday relatively unchanged with the exception that I am moving the support level up for wave (iv) which now comes in at the 2136-2123 range. 

So with that my base case remains that this move off of that 7/6 low as part of wave v of 1 which is shown in white. Under this case we still do not have confirmation that we have indeed topped for wave (iii) of that wave v and are now closing in on the 200 extension of that move up off of the 7/6 low at 2157. Current support for wave (iv) of v under this impulsive case comes in at the 2136-2123 range and as long as we are over this support zone we should still should ideally see another move higher finish off wave (v) of v of 1 up. A break of this support zone would be the initial signal that we have indeed topped with further confirmation coming with a break back under the 2110 level.

Now should should we complete a full 5 wave impulsive move up off of the 7/6 low as described above it would certainly be possible to consider this a 1-2 i-ii up off of the 1991 low as is shown in green on the chart. Under this case we would still be looking for a local top soon but would then expect to see much more shallow retrace for the minor degree wave ii vs. the larger degree wave 2 as is shown in white. This green count is not my primary count at this time however with these continued extended moves to the upside it is certainly on my radar.

SPX 60m
SPX 60m
Michael Golembesky is a senior analyst at ElliottWaveTrader covering US Indices, the US Dollar, and the VIX. He contributes frequently to Avi's Market Alerts service at EWT while also hosting his own VIX Trading service.