Friday’s trade added to current analysis in that the “C” wave decline continues. Quick recap the NQ continues to form a Minor wave 2 correction. Waves ‘a’ and ‘b’ of wave 2 are complete and wave ‘c’ is nearly so. The NQ is opening weaker as the Globex session gets started. For Monday the current count allows for additional downside with a move t0 support at 15414 tp 15386 and the 15312 to 15300 with 15215 also in play. The “no break line” comes in well below at 14922. A break below would begin to leave the high at 16768 in place as the completion of Intermediate wave 5 instead of wave 1. The result could then carry the NQ back to 14410 before a more sustained rally kicks in. Under the current count support at 15382 to 15311 would provide a stronger technical bottom with a spike higher the likely start of Intermediate wave 5 and conversely should the NQ break below 14922 with acceleration and “purpose” the NQ opens the door to aim for the Weekly 50 MA at 14475 and flip the count to bearish.
January 10, 2022