Market Trades Flat On The Day
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The market opened up just about flat and has not moved very much throughout the day. So with that, there really is still not too much I can add to the previous analysis.
As I noted yesterday 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 no signal that we have put in a top just yet.
I have moved upper support to the 6062 level on the SPX and I would view a break of that level as an early signal that a top may have been struck. We still would 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.
