It’s Decision Time

Thus far, the market has rallied up to the smaller degree 1.00 extension, pulled back to the .618 extension, and now has a micro bullish set up to take us towards our next higher target box.  The setup is in place, but will the market follow through?

At this point in time, I have to note the alternative count in a bit more detail.  A break down below 1977SPX, which follows through with a sustained break of 1968SPX, points us down in the a-b-c structure noted for the blue (b) wave below, as outlined on the 5 minute chart.

But, with the market dropping correctively towards support, and holding support, we still have to give the edge to the bulls, until they fumble the ball with a break down below 1977SPX.  So, as long as support holds, next target is 2027SPX.

5minSPX
5minSPX
5minES
5minES
1turnchart
1turnchart
Avi Gilburt is founder of ElliottWaveTrader.net.