Wednesday’s trade resembled Tuesday very closely. The NQ had started higher in the globex session with the U.S. opening giving a bullish updraft and a new high at 14996. The market once again rejected the level with the energy shifting to the sellers. The result was again a drop of over 100 points. Labelling remains the same with the 14994.75 high being the completion point for a 5 wave advance. Beyond that is still open with the pattern after today leaving the following: from the high at 14994.75 the market has traced out either waves A and B of a small correction, with a C wave down underway. This would suggest based on the structure that wave C will find support at the 14834 area to complete, which would then yield to the advance picking up again. The additional possibility is that off of the 14994.75 high the NQ has started a 5 wave decline wherein waves 1 and 2 are complete and wave 3 is now underway. This would suggest the market will begin to move quicker to the downside breaking below 14834 without much hesitation and ultimately finding support at 14735 to 14700 before bouncing higher in a 4th wave.
July 14, 2021