Consolidation Until Proven Otherwise

As expected, the market began a consolidation today, which we are counting as wave (iv) of iii of 3 – which you can see on the 60 minute chart.  While I still think this can take us into tomorrow until it is completed, the issue we always have in 3rd waves is how much of a pullback can you reasonably expect.  But, for now, since we hit the 1.236 extension on the micro pattern up, I will “expect” at least a re-test of the 1.00 extension at 2246SPX.  But, the full pullback ideally targets the .764 extension at 2232SPX, but I am not sure we will see that deep in this segment of the trend.

As we have mentioned many times, our primary count has us in the heart of a 3rd wave.  And, we will retain that perspective as long as the market maintains over the 2220/30SPX upper support zone.  So, for now, it is steady as she goes in a bull-trend. 

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