Came Up A Little Short

I am going to keep this update rather simple.

Today, the market rallied up to the .500 retracement and was not able to extend up towards the minimum target for which I was looking at the .618 retracement of the prior decline.  Moreover, I can also count a micro 5 waves down off today’s high.  But, I will add that I do not see the same in the micro structure in IWM.

So, I am writing this update a little early to warn you to stay on your toes.   As long as we remain below today’s high, pressure can begin to be viewed as being down.  We would need to break back over today’s high to invalidate this potential 5 waves down, and suggest that wave v is in progress.

But, in the bigger picture, I still think we are going to see a push to new highs north of 5800SPX since we have not seen a clear 5-wave decline from the recent high.  So, even if we do see another decline in the coming days, as long as we hold that support box below us on the 5-minute chart, then I am still forced to look higher for one more rally to 5800+.