Tuesday’s trade was exactly what we needed to eliminate the 2 downside scenarios for. The NQ did pick up the rally again after giving the obligatory “head fake” opening to the downside briefly. Once the buy side was established the market had little trouble moving to the previous high at 14205 and once thru it put the pedal to the metal reaching 14279 which was just shy of resistance at 14289. The Elliott labelling has been added to show the development of minute wave 5. Wave 5 is subdividing where sub waves 1 and 2 are complete and wave 3 is well underway. Expectations are for two series of 4th and 5th waves to push the advance over 14300 and possibly 14400 before wave 3 completes – Once that occurs an additional slightly larger 4th wave correction followed by the finishing 5th wave reaching above 14500 is likely. Having said all of this — remember it remains critical to continue to trade whats in front of you. Continue to use Elliott and Fibonacci on the smaller time frame charts — keep the moving averages in view as guidance.
June 22, 2021