by Avi Gilburt, ElliottWaveTrader.net
Thursday March 6th 2014
With the push higher we wanted to see today, the market has not given us any indications that it does not yet want to head even higher still. No support has been broken, nor do we have a solid 5 waves off the highs.
For now, I am watching the 1864-1869ES region as support for what may be wave iv, with only the wave iii completing at today’s highs. But, until that support region is broken, I cannot even entertain that 5 waves has completed into our topping region.
And, as many of you may have remembered, I am still keeping that larger diagonal in the back of my mind, and have just placed it on the chart just so that you keep it in the back of yours as well. The main level of support for this expanding ending diagonal is 1845ES. While this is clearly not my primary expectation, it is something that we do have to watch in case the market does break down after today’s highs.
So, I cannot assume we have begun the larger degree correction which we are expecting until all support levels are broken: 1864ES, 1845ES and 1833ES. However, the break of 1845ES makes it much more likely that 1833ES will not hold on the next time down.
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