Elliott Wave Update – NQ – June 3, 2021
Thursday’s trade threw a bit of a curve ball in terms of what took place versus expectations. I had included on yesterday’s update the potential for the NQ to decline but felt that it should be held at the 13600 level. In fact, I had moved additional decline to the alternate view in favor of the advance picking up some steam and power the NQ back above 13800 on its way to ultimately new highs. But the NQ said “HA” to that and pushed lower and breaking support at 13600, 13500 before finding support at the 13462 level. Taking a look at the pattern itself has caused me to review the count thus far for the minor wave 5 which remains in force. I have changed the labelling to reflect what I believe is happening. The change is that I have moved minute wave 1’s completion to 13738 where I had placed minute wave 3 previously. And not to complicate the matter, but this change suggests that ultimately minor wave 5 will form a series of 3 wave patterns as it pushes to new all time highs. So as you can see on the chart wave 1 is an “a-b-c” pattern. Wave 2, previously labeled as wave 4, has also moved into a more complex corrective pattern being a triple a-b-c structure. Not that common but still seen during periods of indecision as to direction. Taking a look at the chart I have updated the labelling to reflect the 3rd a-b-c being in force now. While the wave 2 correction may be complete at today’s low at 13462 there is a strong potential for the NQ to drop again to support at 13422 to complete the move. A break back above 13600 though would give stronger support to the wave 2 correction being complete and the next advance being underway. Remember though, I always let the market tell me what it wants to do and trade what is in front of me.