Tuesday’s trade was picture perfect if you enjoy large swings off of highs that fit current analysis. As left on last night’s update I was looking for a small 4th wave correction and then a 5th wave up to 13875 resistance and with enough push above 13900. Got it all within the first few minutes after the opening. The NQ reached 13917 before bolting lower and falling 145 points in a little bit more than an hour. So it appears that the first 5 wave sequence up is complete and now labeled as the completed wave 1. The wave 2 correction is well underway and from what I can see thus far has likely complete waves a and b needing a c wave decline to complete the sequence. Fibonacci support levels point towards the zone from 13690 to 13636 as the area to complete the correction. All that is needed though is for the “c” wave to drop below the low of wave “a” which is 13743. For now let’s allow the market to tell us and trade what is in front of us. Once wave small correction is complete expectations are for the rally to pick up the pace and ultimately get above 14000.
June 8, 2021