The sideways action from two weeks ago was resolved last week in the same way we got used to in the last few years - up. Last week was certainly bullish, with 5 green daily candles and several new ATHs. Although the last 3 days saw the market only grinding up, the declines were very limited, so nothing to cheer on from the bear camp. From an EWT perspective, now that the market made new highs, the favorite is still the bull option, which looks like a nested move up from the low at 2417. Even if that will not turn into a nest and will prove to be only a bigger 3 waver, it still looks like it needs a bit more up. The bear option is that this turns out to be either the flat we were mentioning in last week’s newsletter or that this overlap is not a nest, but an ending diagonal. The latter will gain weight if the market heads down and overlaps 2480 before making 5 clear waves up off 2428.
No change on the weekly cycles. Directionality is still heading lower despite the upside from this week.
The daily cycles are in an interesting place. ES broke above the resistance level and is close to confirming a new up impulse. That would be very bullish if it happens.
The 288 and 480min cycles You need to be authorized or upgrade to see this content. Please go to http://mcm-ct.com/membership-signup-dev-2/ to sign up.