by Avi Gilburt, ElliottWaveTrader.net
Tuesday November 5th 2013
With the market continually testing the 1764ES level, we still have not seen confirmation that wave 5 is upon us. One of the other issues we have had of late is that the 4th wave did not give us a standard retrace, which made it harder to determine if the 5th wave had begun.
Assuming that the move off the lows the other day was a wave i of 5, it seems we are about to embark upon a c-wave in a wave iii within an ending diagonal which would target the 1770ES region into tomorrow, assuming we can break out of the 1764ES resistance. At that point, the red alternative would come off the chart. But, as I said over the weekend, the 1764ES level is very important for confirmation for wave 5 being in progress.
Alternatively, we still can be in an impulsive move for wave 5, but it is hard to see that at this point in time. It will all be based upon how extended this wave iii becomes, or if we drop in a wave iv for Wednesday into Thursday. So, stay tuned.
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