Elliott Wave Update – NQ – June 2, 2021

Wednesday’s trade produced a similar pattern to Tuesday’s trade in that the market opened and pushed to the session high within the first hour and then put in a drop to session lows. This was followed by a steady rally into the close.  For the preferred count it does give the chance to move the “c” and “iv” labelling over to today’s low and mark the completion of the minute 4th wave correction off of Tuesday’s high.  If this is the case minute wave 5 of minor wave 5 of intermediate wave 5 is in its beginning stages.  Also this would suggest the end of range bound trading for now with a new 5 wave sequence unfolding to the upside. This also would suggest that new highs above 14064 are back in the picture.  First though the NQ needs to break back above 13740 without really looking back or getting stuck in a “rut.” Pull backs withstanding we need to see a break and close above 13800 to give support to the cause for new highs.  The alternate view at the moment would suggest that a larger “c” wave is unfolding off of yesterday’s high at 13730 with waves 1 and 2 complete and wave 3 beginning.  However, in order to stay alive as a count, the market can not break above 13713 and as of this writing that would be 11.5 points from the current level.  If it holds and turns lower my expectation would be for the downside to begin to accelerate as the NQ break below 13600 and heads lower.