Monday’s trade was interesting as the first full trading day of 2022. The NQ did manage to put in an additional low at 16292 which has allowed me to label the completion point for the minute wave 4 correction. However, having done that it does put some pressure on the NQ to hold above 16427 and continue higher with a break above 16541, 16659, and 16695 to complete this initial leg up of the larger Minor wave 1. A break above the all time high for the NQ at 16768 would open the discussion on the degree level for the current rally which began off the 15492 low. If though the NQ fails to hold above 16427 and breaks below the hourly 50 MA at 16427 it would increase the potential that the minute wave 4 correction is still in force. with support for that move at 16253 to 16200.
January 3, 2022