Completed Pattern or Are We Just Getting Started?

With the market making a higher high today, a much more complete looking 5 wave structure has now completed off the 2147SPX low.  This makes our job quite simple right now.

First, I am going to expect that we will maintain below resistance noted on the chart and now begin a pullback.  If the pullback is shallow and does not break down below the blue count support box, and then rallies over the resistance region, then we are on our way to 2350 sooner than I had initially expected.

However, my preference is that we begin a correction that can take us the rest of August, and potentially into September for a wave ii in wave (3).  And, once the market has confirmed its top being in place over the next day or two, I will place retracement targets on the chart.  But, for now, my preference is to see a deep retracement for wave ii.  I mean, we have to start hearing again about the major market crash that is going to be seen in 2016. (smile)

1turnchart
1turnchart
Avi Gilburt is founder of ElliottWaveTrader.net.