Market Still Over Support But No Breakout Just Yet
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Today we saw the market push a bit higher after seeing a retracement to the downside yesterday. As we are still well under the highs that were struck earlier in the week we still can see a deeper pullback even under the near-term bullish case but as long as we remain over key support below we still do not have any confirmation that a larger degree top is in place just yet on the SPX.
Drilling down to the five-minute chart we have overhead resistance for the micro wave b come in at the 5893-5912 zone just overhead. As long as that zone holds I still prefer to see this pullback lower even under a wave c of (2) as shown on the chart. Under that case then the 5820-5788 zone will act as key support below. Moving below that 5788 level would open the door to seeing a push under the 5722 level which would be an early signal that we may have put in a larger degree top. Further confirmation of that top would then come with a break under the 5396 level below.
As long as we are able to hold support and then push back over the 5920 level on the ES then the more immediately bullish path remains viable and we still have ea path to see a move into the 6130-6466 zone before any larger degree top is seen.
