by Avi Gilburt, ElliottWaveTrader.net
Tuesday July 23rd 2013
As I have said the last two days, the 1687ES level is the initial key to breaking down into a wave iv pullback. As we began the pullback today, I warned that you should not be fooled by a spike and reversal that takes us just below 1687ES, as they take out stops and run it right back up. Therefore, I kept reiterating I wanted to see a meaningful and sustained break of that level, which we have not see yet.
For now, as you can see from the 60 minute chart, if the market is unable to break down below the 1686/87ES region, then we can still see a small degree wave (v) take us up to the 1701-1703ES region. A break out over 1692.50 would be the first indication of this potential.
So, as I said earlier, the lines have been drawn in the market right now – support is 1686/87ES and resistance is 1692.50. A break of support has a minimum target of 1682ES, which would likely only be an a-wave of wave iv, which means we likely still have another day or two until all of wave iv is complete.
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