Upside Set Up Remains In Place

While the futures have seen a slight undercut of the September ES contract 2177ES level, the SPX had an equivalent support at the 2177 level (which I posted early this morning) which is still being held.  So, the upside pattern still remains intact, as long as these supports hold. 

For two months now, we have been meandering in the same region, and the market has refused to tip its hand.  In speaking with Zac, there are a number of stocks that are setting up to break out to the upside, which supports the blue count potential on the 60 minute chart.  But, at the same time, The Scary Guy has his indicators pointing down.  And, the wave structure in the SPX right can support either outcome, which surely does not help in being a deciding factor.

As I sound like a broken record, as long as we remain below the resistance on our chart, I am still looking for a bigger pullback in wave ii of (3).  However, should we see a break out over the resistance region, and hold over 2180SPX on all pullbacks, I would suggest you not even look at short trades for quite some time, as a melt up in the heart of a 3rd wave will be taking hold into the end of the year.

So, like many of you, I will be sitting and waiting for the market to provide us with the signal for the next bigger move before I begin to adjust my portfolio.

1turnchart
1turnchart
Avi Gilburt is founder of ElliottWaveTrader.net.