Market Still Grinding Higher As We Hold Support
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Today we saw the market continue to grind higher while holding over support. So with that, there really is not too much I can add to the previous analysis as this pattern continues to stretch higher. Overall the micro pattern remains fairly messy with quite a bit of overlapping three wave structure off of the November low and into today's high. This is still suggestive that we are in the final stages of an Ending Diagonal off of that low. With that being said however until we begin to see a strong reversal and a break of support there still is not signal that we have put in a top just yet.
Drilling down to the very micro level I would view a break of the 6042 level on the SPX as an early signal that a top may have been struck but we still would need to see further confirmation with a break under the 5984-5962 zone to further confirm that potential top. If and when those levels are broken we can then see where the next pullback lands at which point we can begin to assess whether we have indeed put in all of the much larger degree top or if the market still has another larger degree fourth down and fifth up for us before that ultimate top is struck.
