Grinding Sideways For A Week

I want to start this update by reposting something I wrote earlier in the day today:

“I have been asked a number of times today as to whether that drop yesterday was 5 waves down.  And, to be honest, it can be.  But, I have to note that my hesitation is because the proportions are not anywhere to be considered as a "clean" 5 down.  Rather, the proportions in SPX seems to be closer to a corrective drop.

So, I will reiterate, until the market can give me an impulsive structure breaking below 2840/45 support, I have no clear indication that the b-wave has ended, which still leaves the door open to 3011-40SPX, as discussed many times.”

That means that anyone with an immediate bearish bias may want to allow the market to move into a bearish posture before they start trading that aggressively.  As I noted last night, the market has had many opportunities to turn down over the last 3 months, but has refused to do so each time.  It now has a door it can walk through to take us to the 3011-40SPX region.  And, until it actually can break down below 2840/45SPX, it can take that path once it breaks out through 2915SPX.

So, as we have now been grinding in the same region for over a week now, the market has a decision to make.  And, until it PROVES that it can break support, I cannot say with confidence that it will be starting that c-wave lower sooner rather than later. 

5minSPX
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Avi Gilburt is founder of ElliottWaveTrader.net.