Thursday’s trade continued to trend higher for the morning session. The NQ did reach resistance at 15003 and then spent the balance of the session moving lower. It is too soon to tell whether or not today’s high marks the completion point for the Minor wave 2 bounce. Therefore we still need to allow for additional upside reaching higher into the resistance zone which runs from 15045 to 15095. However, if the NQ breaks below the hourly 20 MA and then again below the hourly 200 MA at 14814 and the hourly 50 at 14801 it would build a much stronger case that the Minor 2 correction is complete with the Minor 3 decline underway. Minor 3 should contain stronger periods of acceleration to the downside and ultimately below the low at 14368. Expectations would be for Minor wave 3 to drop the NQ below 14000 before it completes.
October 8, 2021