Tuesday’s trade was very similar to Monday’s in that the NQ continued to climb higher breaking resistance along the way. Tuesday saw the NQ break above and close above Fibonacci resistance at 15400 and while the market may seem overbought it doesn’t appear that pullbacks will be deep. In fact thus far over the last 7 days, the NQ has underperformed when it came to pullbacks, Tuesday notwithstanding. I suspect this will remain the case until more component companies report their earnings. The probability weighting on break to new all time highs has also risen, (55 to 60%) and I feel more confident that it will break above 15709 before wave 5 of “C” is complete. I have updated the Fibonacci retracements for the larger “B” wave in progress off of the 14368 low and discuss the overlap on the way higher. Ultimately, the NQ now carries stronger potential for the rally to reach above 16000. That level of course will be more defined as the move continues.
October 19, 2021