Market Stuck In Nuetral
By
After moving lower yesterday, we saw the market move back up slightly today and we are trading flat as of the time of this writing. We are still sitting over support for the potential wave (b) off of the lows but under micro resistance on the smaller timeframes. So with that, until we can either see a break over the smaller degree resistance or under larger support below the market seems to be stuck in neutral.
Drilling down to the smaller timeframes the move down off of the 11am high counts best as three waves so I would expect to at least see a wave (c) up over that high before lower.
If we can manage to get through the 5759 level then it opens the door to a move directly to new highs, but we still have some work to do before we can expect that to be the case.
If we fail at the 5742 or 5459 level and turn down on five waves, then we are likely heading lower in at least a wave c of larger (b) at which point we will watch the support levels below in the 5609-5534 region.
If we begin to break under that 5534 level then it would open the door to seeing a direct move lower per the red count as laid out on the 60min chart. As long as we hold over that support zone, I am still leaning toward seeing at least a push higher over the 5786 high before making new lows.
We will, however, need to remain vigilant and keep an eye on the structure of the action in both directions to help give us further guidance as we continue to navigate this choppy and corrective pattern in which the market finds itself.
