by Avi Gilburt, ElliottWaveTrader.net
Thursday February 20th 2014
With the market coming back up to the highs yet again, it is threatening once again to break out to new all-time highs. But, the question now is if it has the strength to do so, or are we going to roll over and test the 1810ES region.
But, without the market turning down today and breaking any support levels that we cited all day on the way up, it certainly has left open the possibility that a 4th wave has completed at the overnight low, and a 5th wave is in progress. Mind you, the Fib levels and structure on the way up are highly irregular for such a scenario so our position must be maintained that the market will swing down into tomorrow.
Alternatively, if the market can move through the 1840.50ES level, and attach the prior highs at 1844-1846, and then not break down below 1836/38ES on any pullback, we will likely be on our way to completing a 5th wave, the ideal target region would still be in the 1865ES region, with the potential to extend, depending on how strong a break out over the prior highs results in a short squeeze.
Currently, support is at 1834 and a break down below 1829 should confirm an attack on the 1810ES region.
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