Thursday’s trade did help clarify the Elliott count and labeling plus brought clarity to the correction now in force. The NQ did continue to move higher in yesterday’s globex session. Once European markets were fully online though, the highs were reached at 14883. I start on the 4 hour chart tonight which does assist in bringing the structure of the correction thus far. I’m satisfied up to this point with the NQ being in the initial stages of a larger degree 4th wave correction. I’ve started the count from a Minor degree. Thus far I’m now still satisfied that the NQ has completed Intermediate waves 1 and 2. Within Intermediate wave 3 (down) I have labeled the 14711 low as the completion point for wave 1 of 3 and the high at 14879, (globex high) as the completion point for wave 2 of 3. That then suggests that wave 3 of 3 is underway and will subdivide into its own 5 waves down. This is where the point of recognition kicks in. There is a higher probability for downside acceleration to occur. Please understand that while volatility will and has increased it will occur in both directions making both very tradeable. At this stage it should not be a problem for the NQ to drop to the 14500 area. Ultimately there is also an increased probability for an extended move down to 13944 to 13850. Stay in the “NOW” and trade smart.
September 30, 2021