Target reached but no evidence of a local top yet
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Pre-market this morning, futures jumped higher following the release of CPI data, which quickly brought price into the target range that Avi has been noting for this 5th wave off yesterday's low. With that target achieved, we are now looking for a local top as either all of 5 waves up from the May 31st low completing, or as an alternative wave 3 of a larger impulse.
In either case, we do not have evidence of a local top in place yet, which would require at least a break below the afternoon low made at 5421 to consider. If price does break below that support, then it should be at least the red wave 4 starting with 5381 as initial target support. Until then, 5466.25 is the next fib target above if price is otherwise going to attempt further near-term extension in wave 5 of the blue count or wave 3 of the red count first.
