No New Clues Yet

With the market simply pulling back correctively today, we do not have any strong clues yet that wave iii has topped and wave iv has begun. 

As I have noted before, we have enough waves in place to complete all of wave iii, and we came within a few points of the minimal target.  However, as long as we remain over 2059SPX, the market can still provide us with further extensions that can even take us as high as the upper part of the target box on the 60 minute chart at the 1.618 extensions at 2111SPX. 

To complicate matters further, thus far, we have only 3 waves down and most 4th waves begin with 3 waves down.  So, it still comes down to a break of support. 

To have a better indication that wave iv has begun, we need to see a strong break of 2059SPX, which then points us down to the 2040SPX region for the a-wave of wave iv.  Until we see such indications, below 2059SPX, the market can continue to subdivide higher into the middle of the week, to complete even further extensions in wave iii.

1turnchart
1turnchart
Avi Gilburt is founder of ElliottWaveTrader.net.