Friday’s trade was again amazing and profitable. The NQ continued to follow current analysis with an initial rally to 14858 which marked the completion point for wave 4 of minute 3. The sellers moved in again, with acceleration taking over the balance of the day. Support was reached at 11410 with the NQ finishing the week at 14411. The start of Globex saw a quick drop down to 14378 before the buyers moved in. I have updated the Elliott labeling by marking the 14378 low as the completion point for minute wave 3 of Minor wave “C”. While there remains the potential for minute 3 to still be in progress the NQ has rallied over 100 points giving support to a minute wave 4 being underway. Resistance for minute 4 initially should be found at the hourly 8 MA at 14590 and then 20 MA at 14665. Fibonacci resistance begins at 14764 and then 15000. Ultimately if wave 4 is in progress the structure will ultimately form an A-B-C pattern where waves A and C will be advances with wave B a small decline. Also once wave 4 is complete expectations for a wave 5 decline to additional lows under 14000 would be in line. Fibonacci downside support comes in at 14013, 13777 to 13683 and then 13396 to 13255.
January 24, 2022