Setup to make a new high

SPX held where it needed to at 2073 this morning for wave (iv) in the red count and has since provided us with a potential 5 up off the LOD. Therefore, as long as we are above today's low, then my expectation is that price is beginning red wave (v), targeting back near the June high to complete wave i of 3 before the next corrective consolidation in wave ii of 3. Exact support for wave ii of 3 will depend on where wave i of 3 completes, so I do not have a target for that yet. 

Otherwise, if price turns back down from here and breaks below today's low, it puts the blue count back in control as a potential c-wave heading back down to the June low again for a larger wave 2 flat. For now though the red count is preferred.

$SPX - Micro - Jul-06 1340 PM (1 hour)
$SPX - Micro - Jul-06 1340 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.