by Avi Gilburt, ElliottWaveTrader.net
Wednesday September 18th 2013
Early in the day, I noted the market was setting up in a bullish 1-2 potential move. We were pointing towards the 1693ES level as the .618 retracement for this wave 2 set up. And, if this set up was going to play out, then it would clearly invalidate the bearish perspective, which is exactly what happened when the market saw a 3rd wave burst exactly from that retracement level.
So, we are now left with completing the green wave 3, within which we are probably completing an extended wave v, as you can see on the daily chart. On the smaller scale, we likely need to complete waves (iv) and (v) of wave 5 of v of 3 within the next day or two. That will likely set us up with a pullback into next week for wave 4, which can take as long as almost two weeks, since wave 2 was so short.
As for where this larger degree wave tops, as I have mentioned before, we have a lot of long term Fibonacci extensions overlapping within the 1760-1780ES region. And, if you remember, I said that wave 3 is going to have to extend to at least the 1730ES region if we are going to see those levels.
So, for at least the next few weeks, as long as we remain over the 1680ES region, we will have to continue to look up towards those higher targets.
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