by Avi Gilburt, ElliottWaveTrader.net
Tuesday October 15th 2013
With the ES testing the 1691.75 support this afternoon, spiking briefly below it before reversing back up, the ball was in the hands of the bulls to carry price higher into the close. Instead, they fumbled again when only 3 waves completed off LOD and price fell back down towards the end of the day. Therefore, while the blue count has not been technically invalidated, the red count has gained some credence after today's price action. So it is likely that the next leg up will be delayed a little longer, and price will continue meandering down into the support region below, which is between 1683.25 - 1666.75. Coming into this support region would be counted as a wave 2 in red, and setup the next strong move higher in wave 3. In conclusion, both counts, as well as other charts, are pointing to higher levels down the road, the only questions are from where and how soon. If attempting to position long in the target region and playing options, I would recommend buying at least 1 month of time, even though the 3rd wave is not expected to take that long.
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