August 16, 2021

Elliott Wave Update – NQ – August 16, 2021

Monday’s trade in the NQ presented its challenges but the market hopefully did make clear the near term picture.  Initially I felt the NQ was dropping to complete the small wave 2 correction. Once it broke below 14941 though I had to negate the count and refigure what was the market telling me.  After taking a step back and looking at the hourly chart it became clearer that the previous subminute wave 2 correction had not completed the second a-b-c decline, with last Thursday and Friday’s rallies being wave ‘b’ and the decline during yesterday’s globex and the start of today’s trade was wave ‘c’ with the low completing the 2nd a-b-c structure and subminute wave 2.  The rally then off the low is hopefully the beginning stages of the subminute wave 3 advance.  If today’s high at 15140 complete wave 1 of 3, a wave 2 of 3 correction could bring the NQ back to support at 15055 down to 15000 before the advance picks up again.  Ultimately, expectations remain for the NQ to advance to new highs well above 15200 with resistance levels producing zones between 15400 and 15500.