The Market Can Remain Sideways Longer Than You Can Remain Sane
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Overnight, we tested the high that was struck on 7/10, only to be followed by a sloppy move lower. We are still over the key support zone I have been laying out over the past several days, and yet under key overhead resistance. So with that, the market continues to move sideways on what is still very sloppy and unreliable action, leaving us yet again in the same spot from an analysis perspective and with the parameters still unchanged.
As shown on the ES chart, I still have support sitting in the 7548-7485 zone. If we hold that zone and push back over the 7633 level, followed by a break over the 7703 level, then we are likely following the yellow count, at which point the initial overhead target would come in at the 7800-7920 zone. From there, we would need to continue to hold support as we ultimately push higher into the latter part of the summer.
If we break under the 7485 level and then continue to break back under the 7459 level, we are likely following the white count for the larger wave (c) down. Until we see a break of that zone, however, we still do not have any confirmation that a top has been struck, and the bullish yellow count will remain in play.
So for now, we simply need to wait for the market to tip its hand and wait for this slow, sloppy action to resolve.
