Close To Some Kind Of Low – ElliottWaveTrader – ElliottWaveTrader

After attempting a bounce early last week, the market failed again at the 3950 zone on the Emini S&P 500 (ES).  Then it broke the important 3850 support area. 

We shorted after the 3850 support area was broken and covered some profit along the way down, and now are holding the leftover small short position.  

This is a tough market to call at this point.  On one side we have sentiment which is at extremes — internals which are at serious extreme levels that often bring about at least short term lows — and on the other side we have a steady trending down action in price happening. 

Price is always king in these kind of situations, and we need this to turn, as in see some actual buying support come into the market before we can enter into long positions. I think we are close to some kind of low, but also think we have some more downside ahead before this can happen.

Grey zone resistance at 3716-32, 3764-79 and then at 3832-47. Support is at 3669-60, 3599-85 and then the 3550 area.

For Monday, daily pivot is at 3717.  Resistance R1 is at 3776.5 and R2 at 3841.5. Support S1 is at 3653.5 and S2 at 3595. 

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