Consolidation Day - Market Analysis

Consolidation Day

My primary perspective is still to be looking for a pullback in the markets.  However, there was nothing about today’s action which suggests that we have certainly begun it. 

While the rally today was in 3 waves, the decline from the last high was also in 3 waves.  That leaves me needing a break of at least the 2093ES level as our initial signal that the corrective pullback has begun.  For now, not much has really changed since the weekend update, and another leg up can still be seen before we confirm our corrective pullback.

But do note that if a wave ii in blue is in store, we will likely see many of these types of days over the next two weeks.

BaseCase - 60minES
BaseCase - 60minES
BaseCase - IWM
BaseCase - IWM
BaseCase - TurnChart
BaseCase - TurnChart
Avi Gilburt is founder of ElliottWaveTrader.net.