Still Waiting For Confirmation As Market Trying To Break Up and Out
By
Today we saw the market open lower into the support zone for the potential wave (ii) per the purple count and then break higher. We are currently trading in the first micro pivot zone which comes in at the 6066-6085 zone on the ES.
This 6066-6085 zone has proved fairly strong resistance over the past week and should we finally see a break through that region it will be an initial signal that we are indeed going to break out higher per the purple count. We still would however need to see further follow-through with a break over the 6117 level and then ultimately over the previous high at the 6150 level to further confirm that we are indeed going to push higher per that purple count.
Should we fail to see a sustained break of those levels but rather break lower and back under the 6020 level then we still can be topping in the green wave b which would likely be part of a larger ending diagonal for the green wave c. Further confirmation would come with a break under the 5983 ES followed by a break under the 5940 level.
So while the market is still making higher lows and higher lows we still have yet to see a break of the key overhead pivot. Until that occurs however I still remain somewhat cautious to the upside as the structure of the move up off of the lows remains far from ideal. I will not fight price however should we actually see a break of the key overhead pivot levels and will simply move support up if we do indeed continue to push higher.
