Elliott Wave Update – NQ – May 16, 2021
Wednesday’s trade was range bound and provided nothing that would alter current analysis. The NQ continues to be well supported at the upper end of its weekly range. If it breaks higher and gets back above 13730 expectations would be for a run up to the next Fibonacci resistance zone at 13800 to 13860 before putting in another correction. A break below today’s range should clear the path for a move down to the 13600 level to complete a small wave 4 correction. Beyond this I am continuing to leave open the potential for a stronger move down in a “c” wave decline to complete the correction from the all time high at 14064 and set the stage for a finishing 5 wave sequence to new highs. The alternate to this would be for the market to continue higher now with a move up to the zone at 13800 to 13860 to complete wave 3 and put in a small wave 4 correction and then follow up with a wave 5 up to new highs.