by Avi Gilburt, ElliottWaveTrader.net
Tuesday February 25th 2014
With the breakdown of the 1845ES level into the close yesterday, it made the standard impulsive pattern we were watching to the upside much less likely. However, as mentioned yesterday as well, it brought to the forefront an ending diagonal possibility.
Today, we were following what should be the bottom of a wave iv in an ending diagonal, potentially followed by an a-b pattern in the 5th wave of the ending diagonal.
Alternatively, we have a larger corrective pattern on the chart, which should break 1833ES if we are going to see much lower levels. It would then have us targeting the 1812ES region for a c-wave in a larger degree wave 4. That is also the point where the c-wave would equal 1.618 times the size of the a-wave. But, until the 1833ES level breaks down, I am able to still maintain an ending diagonal pattern.
So, at this time, I am unable to confidently see any top in place, as any topping pattern being in place would be a bit forced. I will only adopt a topping pattern in place with the break down below 1812ES, and strong follow through below 1800. Until such time, it still looks like the market wants to attack its next higher target in the 1862-66ES region.
Copyright © 2011-2015 ElliottWaveTrader.net. an AdviceTrade publication. All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from ElliottWaveTrader.net is prohibited.