Upper Support Being Tested

With today‚Äôs pullback, we are now testing the upper support to the market in the 3219-3232SPX region.  That really is the ideal target for a wave 4 pullback if we are following the diagonal structure in the SPX. 

Very simply, should this support hold, then we are likely looking for a wave 5 of [5] pointing us up towards the 3320-3340SPX region.  IF we break this support, then we have the more important 3185-3200SPX support below that. 

Most importantly, and as I have been reiterating, the market must break below the 3185SPX support with an impulsive 5-wave structure for us to consider the top has been struck in the green [b] wave, and that a [c] wave down towards the 2900SPX region has begun.  But, I simply cannot say that we have a clean structure that is pointing to that outcome at this time.

So, for now, 3219SPX is upper support, with 3185SPX below that.  As long as support continues to hold, I am still looking to test the all-time highs again in the blue count to complete wave [5] of [i] off the March lows.  Below support, and we can move back into the green count.

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