The blue count remains alive and well, as outlined last week. The closer we get to the 4818ES+ region, the more likely it becomes, states Avi Gilburt of ElliotWaveTrader.net.
For now, I am still expecting a pullback (I know, a very dirty and uncommon word since October). And the nature of that pullback will determine between yellow and blue. A corrective pullback with a rally back over the high we strike in this rally gets us focused on a target of 4900+ sooner rather than later. However, an impulsive decline will set up the one-two in yellow noted on the five-minute ES chart. And, again, the higher we go here to 4818 or higher, the more likely the blue count becomes.
Moreover, due to the nature of the action we have seen of late in the market, I am even keeping an alternative bullish count in the back of my mind with an (i)(ii)(1)(2) structure of the recent pullback low. But, unless we see a direct move through 4800SPX, I am just going to keep it in the back of my mind. For now, I think the most reasonable expectation is for a pullback. And, the nature of that pullback should be instructive as to how soon we can head to 4900+.
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Avi Gilburt is the founder of ElliottWaveTrader.net.
