Market Still Grinding Higher Over Support
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Today we saw the market open higher and continue to push higher into the end of the day. At the time of this writing, we are closing in on the 161.8ext of the wave 1 of larger (c) off of the 8/7 low. Furthermore, we are still over even the uppermost micro support level and the pattern for the wave (c) still would look much better with another fourth and fifth wave to give us a more complete and standard pattern. So with that and as long as the market continues to hold over support we still do not have a signal of even a local top in place just yet and we still need to see a break of support followed by a five wave move to the downside to give us some sort of signal that we may have indeed put in a large degree top.
Drilling down to the smaller timeframe ES charts we can see that we are still sitting well over the 5551-5507 upper support zone. This is the ideal zone that should hold if we are indeed going to see this continue to grind higher. Any pullbacks should also come in the form of three waves into that support zone.
Should we begin to see a break of that zone and/or a full five down off of the high then it would give us an initial signal that we may have put in a large degree top. We would of course still need to see a further break of the 5435 level followed by break of the 5319 level below to give us additional confirmation of a top. As long as we remain over those levels however we still likely need to see at least one more wave 4 and 5 to finish off this wave (c) up off of the lows.
Bigger picture not much has changed from the weekend update. We still will need to see the structure of the next move down after we top in the wave 5 of (c). That will help determine whether we are going to see a top in the larger green wave b or simply just the blue wave a that would then be followed up by a wave b down and another wave c up to finish off the larger degree pattern.
