Very Important Pivot This Morning

With the market moving through the pivot yesterday afternoon, the pivot now becomes tremendously important in keeping pressure to the upside.  This is one of the main tenets of Fibonacci Pinball.  If the market rallies to a 1.00 extension, and then cannot hold the pivot on the ensuing pullback, it likely means the rally was a corrective rally.  And, that is where we stand this morning.

All night long, the ES has been trying to hold the pivot.  And, as long as we hold it, we can continue to look higher.  But, remember, if we are unable to hold it, we open the door to a [c] wave down again.  

As I have been trying to stress throughout this entire rally structure, we are still dealing with 3-wave larger degree structures, and it often provides much whipsaw with 5-wave structures failing to follow through.  So, I want to reiterate something I posted in the room right before the close:

"One last point before the close . . PLEASE FOCUS ON THE BIGGER PICTURE HERE. Yes, I would still like to see the micro pivot hold and take us to the 4100 region.  But, in the bigger picture please recognize that it is LIKELY that we are on the cusp of a larger pullback in either wave (iv) or the yellow b-wave.   So, just consider where we are in the bigger picture please."  

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Avi Gilburt is founder of ElliottWaveTrader.net.