Monday’s trade was very much in line with yesterday’s analysis. The NQ fell into the support zones discussed on yesterday’s update – in fact the NQ exceeded support at 15300 and 15215 before reaching the low at 15152. The bounce off of the low was exactly what I was looking for to give some support to the low being the completion point for the Intermediate wave 4 correction. I have updated the charts to reflect the end of Intermediate 4. The resulting rally traveled 460+ points off the low and was stopped by the closing bell. What I look for from here is the formation and completion of a 5 wave advance on the hourly chart. Thus far as discussed it appears that only 3 waves are complete thus far. Expectations would be for the NQ to put in a small 4th wave correction followed by a 5th wave advance moving the market cleanly above 15700. Should the NQ break back below 15328 it would leave 3 waves up off of today’s low and again put a negative pall over the NQ. Should it occur the NQ would likely be on the way to the daily 200 MA which is at 15074, with a break of the 200 MA it would clear the path for acceleration and a possible drop to Fibonacci support at 14410.
January 10, 2022