Tuesday’s trade ended up being a “lucky 13” day in that the NQ gave us the “trifecta” of moves. Allow me to explain — I left off on yesterday’s commentary that expectations would be for the next series of a 4th and 5th wave to begin and to look for a quick decline of up to 200 points to be followed by a wave 5 advance that would move higher with the same speed and intensity as the decline. And that was exactly what we got – wave 3 of 5 did take the NQ above 14900 reaching resistance at the 14925 area. The CPI report drove the NQ lower by 135 points to 14794 putting in wave 4 of 5. The buyers roared back in and pushed the NQ up 200 points to new all time highs at 14994.75 which was 4 points shy of a Fibonacci resistance zone at 14998 to 15028. The market did eventually reject the highs and sank over 100 point ending lower on the day. I have updated the labelling to show a completed 5 wave advance, but that is as far as I can go. I need the market to let me/us know if the larger sequences are also complete. Expectations are all included in tonight’s update.
July 13, 2021