With the government Non-farm Payroll numbers coming out this Friday early morning, I suspect that the markets will enter a customary pregnant pause before this important report. The ADP report tomorrow may give a peek at what could be expected on Friday.
The Short Term count above takes this potential action into account. Anticipating a slow choppy move down to a well defined support area at 1505 to 1520. An even tighter cluster of support can be seen at the 'sweet spot' Bullish impulsive behavior will often use the 10 EMA (daily chart) as support, it is currently at 1514 creeping higher.
The 1497 to 1478 area is a jeopardy zone, which is a neutral area that can often extinguish many previous bullish vibes. These zones are typically located below the 61.8% fibo retrace level and/or below the previous wave 1 (i blue)and the start of the impulse, in this case 1478. Price action in the jeopardy zone is a warning only and doesn't necessarily indicate the trend will fail. 3 wave choppy moves into the jeopardy zone are less trouble than a sharp 5 wave impulse into the zone.
Death is Death, final, irreversible. If Elliot Wave rules are violated then the count is required to change. In this case, Wave 1s (i black) is no longer considered a wave 1 impulse if it is fully retraced below it's origination point.
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