Wednesday’s trade was initially revealing but by the afternoon became extremely revealing! Initially, the NQ appeared to be finished with the corrective sequence I was tracking and had begun the next 5 wave sequence up — HA – The best laid plans were promptly rejected by the market as the sellers caught some wind and dropped the NQ initially to 13975 and started to rally. Once we came with earshot of the FOMC announcement trading crept along – on the initial announcement the seller bombs hit and knocked the NQ down to 13830. It broke through levels that I had discussed shouldn’t be crossed if the market was intending to rally towards new highs – That brought several alternatives to the front, but trading what was in front of me took priority. After the bell I got the opportunity to see what took place — I have revised the labelling to continue to include a stronger upside finish to the long term advance. Also, because of today’s trade I have begun to discuss the potential that the highs are in for now and the next Primary wave 4 correction is underway. I’ve included Fibonacci levels for both upside and downside and where breaks would occur to negate either count.
June 16, 2021