Elliott Wave Update – NQ – May 12, 2021

Wednesday’s trade brought in an additional strong selling. Triggered by the CPI numbers this morning drove the NQ down 190 points before recovering into the opening, where the selling contributed to the formation of the wave 5 down which will complete the 3rd wave down. The current 5 wave sequence down started off of th 13820 high from last Friday. As I discussed yesterday there are 4 subdivisions thus far of which 2 are complete and the 3 nearly so. Expectations would be for a new low to be put in place below 12959 to complete the 3rd subdivision and will be marked as wave “v” and in turn wave “3”. This should then lead to another 4th wave bounce and a 5th wave down to complete the larger sequence off of the 13820 high.