by Avi Gilburt, ElliottWaveTrader.net
Tuesday March 4th 2014
With the market holding the all-important 1833ES level yesterday, and taking out the 1853ES region of resistance, I said that we have to then look up towards the 1880ES region, which is where we find ourselves right now.
As of my writing this update, the market is still completing wave iii in this move off the lows. The question in my mind is, when the current 5 wave structure completes, will that finally be all of wave 5, or will that simply be wave i in an extended wave 5. Until we are able to break down below 1833Es, we must continue to look up at this time. So, after we top within the next day or so in this current structure, I will be watching how we drop very carefully to make this determination. In the event we drop down to the .618 retrace of this move, it would have us targeting the 1920ES region.
However, if the market should break down below the 1853ES level before we are able to complete all 5 waves up right now, then I have an alternative larger ending diagonal pattern, which will likely take the rest of March to complete, and would whipsaw traders for the rest of the month.
So, again, as long as 1833ES maintains support, we must be looking up. A break down of 1833ES is the signal that a larger degree correction has finally begun.
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