Trading range continues - Market Analysis for Jul 28th, 2016

After the initial move lower this morning, the market has since turned back up to close positive, but for now remains in the tight trading range that has formed over the past week or so. This action is still suggestive of a continuation pattern, likely as a wave iv triangle that can take price to ~2196 SPX next in wave v if we breakout to the upside. Otherwise, a sustained move below yesterday's low should indicate a local top in place, after which I will be looking at 2 regions of support: Upper support being 2136 SPX for a possible deeper 4th wave that would still allow for one more high in this rally off the June low, and below there 2103 - 2060 SPX if wave i of 3 has already topped and price is in wave ii of 3.

$SPX - Micro - Jul-28 1343 PM (1 hour)
$SPX - Micro - Jul-28 1343 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.