Monday’s trade let me know that I had rushed a little in deciding that the minor wave b of Intermediate wave 4 was complete at Friday’s highs. With Monday’s surge of buying taking the market to the next Fibonacci zone at 13615 to 13694. I have moved the labelling higher but include the potential for the NQ to continue up to the next zone of resistance at 13820 to 13870. If today’s high complete the minor b wave we should begin to see a more concerted effort start to the downside with breaks below support easy and quick. Remember that the next down leg will be a minor ‘c’ wave which will consist of 5 waves. Within those 5 waves – waves 1, 3, and 5 will subdivide into their own 5 wave structures while waves 2 and 4 will be a-b-c structures. Expectations remain for a Minor C wave to begin and complete the Intermediate wave 4 decline off of the all time highs.
May 24, 2021