Still Not Enough Evidence That Upside Has Completed

Equities started off the day initially lower, actually producing what looks like a clean 5 waves down from the pre-market high. However, as I noted in an afternoon update, there was a reasonable interpretation for that 5 down being the (C)-wave of a corrective flat off of yesterday's high.

During the afternoon session price managed to rebound back up, retracing the majority of the decline off the pre-market high. Therefore, unless a break back below today's low is seen, there is still not reliable evidence of a local top in place, with the door remaining open to another high from here.

Otherwise, if price does turn back down from here, holding a lower high compared to the pre-market high and then breaks back below today's low, it should place it in at least a larger wave 4 shown in red. At that point, 5380 would become main support expected to hold as red wave 4, below which would be needed to open the door to a more significant top in place and eventually a break of Tuesday's low for confirmation.

ESM24 - Intraday - Jun-13 1216 PM (30 min)
ESM24 - Intraday - Jun-13 1216 PM (30 min)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.