Pattern Remains Full As Market Has Another Flat Day
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Today was very much a repeat of yesterday as we saw the market trade slightly higher this morning only to move back to flat by the end of the day. So with that, I really do not have much I can add to the analysis as we remain very much in the same stance as yesterday. We still have a very full pattern in place down to the most micro of levels however we still remain over support so we do not have an initial signal of a top in place just yet. In regards to the analysis really nothing has changed from what I noted yesterday and what was noted in the weekend analysis.
I am still going to use the 5597-5571 zone as key support. As long as we remain over that zone we still can continue to extend higher. I will note that we are getting quite extended on the micro timeframes as we are now approaching the 300ext of the initial move up off of the 7/2 low. With that being said until we actually see a break of support and/or a full five down off of the highs we still do not have any signal of a local top just yet. If and when we can break the 5571 level we will then need to see a break back under the 7/2 low followed by a break under the 5365 level on the SPX to signal that we may have put in a larger degree top but the upper support levels are as noted above on the ES.
Bigger picture nothing has changed as the primary count remains that we are topping in a wave b after finishing off the larger wave (5) in March. The MACD on the 60-minute chart is still rolled over but we need to see some downside follow-through and a break of support to give us confirmation that a top has indeed been struck.
