Nothing To Write Home To Mama Bear About – Yet

With the market pushing even higher today, we have seen a very nice extension in the micro wave iii I have outlined on my 5-minute SPX chart.  In fact, whereas a standard extension points to the 1.618 extension of waves i and ii, we have even slightly exceeded the 2.00 extension, and I am still not sure if this micro wave iii is done yet. 

If I have to go by this chart, I would still say we are missing that micro degree wave iv and v before this actually tops out.  So, micro support right now remains 3420-40SPX, and as long as we remain over the micro support level, I think we can still see a iv-v to complete this segment of the rally. 

Now, looking at the IWM, it has been come immensely sloppy and now has me questioning whether it can resurrect and see that 160+ ideal target region.  And, at this point, we are starting to run out of room for it to support a run higher.  But, until we actually break below Friday’s low, I am still trying to give it the benefit of the doubt.

In conclusion, not much has changed about the bigger picture.  We are still awaiting the market to complete this final segment of wave 5 of [5] of [i], and then we can begin to look towards that wave [ii] pullback into the fall. 

Micro support is 3420-40SPX, and when we break that support, we will likely then test the upper support region in the 3270-3335SPX region.  At this point in time, I do not think the lower support will hold for anything more than a corrective bounce on our way to lower levels to complete the a-wave of wave [ii].  But, I am getting way ahead of myself at this time.  As per my usual warning, please do not try to front run a correction until we break at least some support.

5minMicro
5minMicro
60minSPX
60minSPX
3minIWM
3minIWM
60minIWM
60minIWM
Avi Gilburt is founder of ElliottWaveTrader.net.