by Avi Gilburt, ElliottWaveTrader.net
Wednesday October 2nd 2013
Oftentimes, a messy market relates to a 4th wave action of some sort. This scenario would still play in well with the e-wave of the larger degree 4th wave we have been toying with. But, there also exists the possibility that we have completed a bottom and we are heading up to make new highs in an a-b-c fashion, of which we are in the b-wave of that first larger a-wave in a bullish count.
So, how do we know if we go down first or up? Simple. Take out todays highs, and the 1697-1705ES region is our next higher target region. IF we take out 1675, then we are likely going to find ourselves in the lower blue box, and potentially as deep as the lower 1650's.
Main support for the uptrend potential resides at the 1678-1680ES region, which is the .500-.618 retracement of today's rally. If we break that, then we will likely test the lower region, which if broken takes us down to the blue box.
Simple, but simply ugly.
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