Market Moves Higher, But Still Under The Key Pivot For Now
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Today we saw the market open up flat but move up in the later part of the day. We are still, however, under the key resistance/pivot zone that we will need to break to give us a signal that we have indeed put in a bottom in all of the wave a. So while this is certainly a good start to a potential bottom, until we can actually get through that pivot zone I still can't rule out that we will see another lower low before a bottom in the wave a is seen.
Bigger picture not much has changed from previous updates. For the smaller timeframes I am now watching the 5038-5087 zone on the SPX as key overhead resistance. If we are able to push through that zone then it would give us further confirmation that we have indeed bottomed in all of the wave a. If we have already bottomed in the wave a, then the wave b should target the 5115-5239 zone before turning back lower in the larger wave c down.
If, however, we hold under that zone and then turn down on five waves it would make it more likely that we are still going to see another push lower as part of a wave v of (c) of larger a. Under that case, I would be looking for a move down into the 4919-4985 zone as part of a bottom of that wave v of (c) of a.
So while this move up is certainly a departure from the grind lower we have seen over the past several weeks, we still have some work to do before we can confidently call a local bottom in place. For now, it is simply a matter of watching the resistance/pivot levels just overhead to help give us further guidance.
