by Avi Gilburt, ElliottWaveTrader.net
Tuesday August 27th 2013
Zac always says that when the market pushes me so far in my primary count that I start considering alternatives, then the market is at the point it is going to prove the main count. Well, yesterday I went so far as to discount the primary yellow count that I even took it off for an expectation of a potential c-wave down. But, I noted in the update that it is still possible to see the wave v down, but, as I also said over the weekend, it must show up early in the week.
Well, it seems that it has. Yet, I do not have a completed wave down yet, which still does leave a small door open at this time, as you can see in the purple count. But, the primary is still the yellow, with the ideal target region between 1613-1617ES. Also, since wave i down was approximately 25 points, a 2.00 relationship between waves i and v takes us right into the 1617ES region as well. So, for now, although we may see a bounce overnight, as long as we remain below the 1641ES level, I am expecting one more drop to that region to potentially complete a five wave structure.
But, I do have to note that I am not liking the RSI on the daily chart at this time, as it could be signaling something a little more sinister playing out. But, as long as we can open higher tomorrow, it should be able to help me with this RSI "issue."
So, as I said that today was going to be VERY important, tomorrow is not quite as important, but I would really like to see the rest of this pattern fill in.
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