by Avi Gilburt, ElliottWaveTrader.net
Wednesday January 15th 2014
With the market not providing a sizeable enough 4th wave before heading higher, it made it much more likely that we are only now completing wave 3 off the lows. In fact, as long as we hold over 1840ES, we may still be able to get to 1850ES for the top of wave 3. While today’s consolidation could very well be considered a very high level wave 4 consolidation, I think everything still points to one thing – as long as we remain over the 1831/34ES region – 4th and 2nd waves of lesser degree, I will continue to look higher to see if the ES can hit the 1859ES higher Fib level.
While I am still only counting this as 3 waves up, this technically can still be a b-wave high. However, confirmation of that potential does not begin until we see an initial break down below the 1828ES region, which is the .382 retracement of wave 3.
As for the ubber bullish count, as long as we do not see any high volume, strong break outs over the 1866ES level, which is the .618 extension in the ubber bullish count, I am still going to view this region as the topping region for green wave (5), which means we will likely see a correction after this 5 wave structure completes which should take us back down into the 1700’s to start. Confirmation for that will only be assured by breaking below the 1809ES level and invalidating all potential for the immediate ubber-bullish count.
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