Burning Time During A Pullback

Well, today‚Äôs action continued in the pullback we are now tracking, and we spent most of the day burning time in a sideways move.  So, I cannot say that anything has really changed from the weekend analysis.

Most specifically, we are tracking a wave [4] pullback, which takes shape as an a-b-c structure.  Currently, I view us as within the a-wave of that structure.  And, the ideal target for this a-wave is the 2700-2750SPX region.  But, the question is how we get there?

In the micro count, I have two counts I am tracking which will point us down into that region.  As long as we remain below 2855SPX, we can target that region in a 5-wave structure, as shown on the 5-minute micro SPX chart.  However, if we rally over 2855SPX, then it makes it likely that this a-wave will take shape as an [a][b][c] structure, as shown also on the same chart.  Since the majority of a-waves take shape as a 3-wave corrective structure, I have to lean towards that potential this week.

Overall, I am still expecting lower in the SPX in the coming weeks.  But, I simply do not have a high probability expectation as to how this a-wave of wave [4] will complete.  It will likely take us another day or two before that becomes clear. 

5minMicro
5minMicro
60minSPX
60minSPX
Avi Gilburt is founder of ElliottWaveTrader.net.