Wednesday’s trade was more muted and choppy which presented its own challenges both to the Elliott count and trading. The Elliott count is pushing a narrative that seemingly is bringing the NQ to a point of either falling off a cliff via a drop towards 14500 or rally back up to 14970 to 15000. Today’s trading range produced a box between 14909 and 14711, which on an Elliott basis could be a series of 1st and 2nd waves which if correct should resolve with a “swan dive” to the downside. On the other side of that is the possibility that the NQ put in a low at 14711 which completed 5 waves down off of the 15399 high, with an a-b-c rally towards 14970 to 15000 now underway. I update both scenarios and present Fibonacci extensions for a downside and upside moves. The picture itself should resolve itself tomorrow.
September 29, 2021