by Avi Gilburt, ElliottWaveTrader.net
Wednesday October 9th 2013
With the decline today, it is a question as to whether we completed the downside in this yellow (y) wave of our former alternative yellow b-wave count. While the Fib levels indicate that a bottom can very well be in - as we reached the 2.00 extension of red waves i and ii, the count provides that one more drop may yet be seen.
So, when I have a question between the two perspectives, we look for a solid break out signal that a bottom is in place and our rally to the ideal target region between 1760-1780ES will begin. For now, resistance still resides at 1658.50, 1661/3 and most importantly at 1666ES. Through 1666ES and we have invalidated any further impulsive bearish counts and can begin to better focus on upside movements.
But, until 1658.50 at the minimum is taken out to the upside, pressure will remain to the downside. Yet, most importantly, this is beginning to look like the market is attempting to feel for a low within the region a little lower than our initial expectations last week. And, while the pattern has morphed a bit, our targets should still remain the same to the upside, as long as we are able take out upside resistance very soon.
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