August 10, 2021

Elliott Wave Update – NQ – August 10, 2021

Tuesday’s trade started the US session with a algo head fake as I like to call them.  The first round of orders were the buys and pushed the NQ to session highs right out of the gate.  The sellers though, stacked up and ready to be unleashed on the market had different ideas and began to hit the market with waves of sell orders.  The move itself did fit within yesterday’s analysis where I include a downside scenario along with Fibonacci expectations should it occur.  Well, it did occur and it did drop right into support just below 15000 at 14994.  The big question at the moment is did it complete the wave 2 correction off the 15172 high?  Still unknown would be my answer.  If today’s low did complete wave, then the rally off the low would be the start of a wave 3 advance, which is subdividing.  So if this is the case what we have already is waves 1 and 2 of wave 3.  And this would also suggest that the next move is a launch higher as a wave 3 of 3 unfolds.  Resistance at 15172 should be easily be overtaken as well as resistance at 15220, 15250 and reaching 15320.  In lieu of that not occurring a continued move lower to complete wave 2 could drop the NQ back to support at 14985, 14930 to 14922 and then 14862.  The “do not break” line is at 14850.