Tuesday’s trade did see the NQ move up to an additional all time high at 15677.25 during globex. The decline off the highs did give some support to it completing the long string of advances of minute, minor, intermediate, primary, and cycle degrees. I have not labeled the charts just yet as I’m waiting for confirmation from the market. In lieu of that confirmation I am looking at the initial decline as the initial stages of a five wave decline. With this in mind and on the 30 minute chart it would appear that waves 1 and 2 of the first 5 down are complete with the 3rd unfolding. If this is the case the market needs to hold below 15615 before turning lower again and start to pick up the pace to the downside. Ultimately I am looking for confirmation of the highs being in via a 5 wave decline on the hourly chart. Until that occurs I remain open to the advance still being in force. A break above 15615 would give support to that being the case. Upside should find resistance at 15641 and stronger resistance at 15685 to 15700 and then 15800.
August 31, 2021