Market Trying To Form A Bottom

This afternoon the market continued to push higher and we are now closing in on yesterday's afternoon high at the 5866 level. If we can manage to see a sustained break over this level it would give us a very early signal that at least a local bottom may be in place, however we still would need to see a continued push higher and over the 5987 level to give us further confirmation that we have put in a larger bottom in all of the green wave iv. We are also showing positive divergence on the smaller degree MACD and we have now seen a MACD crossover on the 60min MACD, both positive signs that a bottom may indeed be in place.

Unfortunately, the micro pattern into the lows is far from clear at this point and I am really relying more on the larger degree pattern and price levels to give us further confirmation that we may indeed have a bottom in place for all of the wave iv. For now and until we see a sustained break higher over that 5987 level, I am going to still leave the door open for this to see yet another lower low before a lasting bottom is indeed in place. 

If we continue to move directly and sharply lower and under the 5570 level, then it would open the door for all of the red wave (5) to be in place. For now, however, and as long as we remain over that level, I am going to continue to give the benefit of the doubt that the market is attempting to form a local bottom in this region.