Wednesday’s trade was explosive after the FED meeting announcement and press conference. As I talked about in tonight’s update it felt like the buyers needing to buy were buying into a “black hole” as the market moved higher in $5 to $10 increments on a hunt for sellers that seemed to be drifting off into the “black hole.” The last hour was slow and again barely saw any stronger selling right up to the bell. This I believe leaves us in a strange position in that we are mostly day traders. Until the sellers show up and begin to show some strength, I wouldn’t want to short the market. If there were to be a moment to use the following old saying “Never short a dull market”, it is now. I have updated the labeling in terms of making adjustments to the “degree” of the current count. I’ve moved the degree up with the moves including the extensions that occurred. The overall pattern remains the same in the I still am counting the current advance as an Intermediate degree irregular “B” wave. I’ve also reinstated the Fibonacci extensions under the updated labeling. The upside target above 16200 has been raised to 16275 with the next Fibonacci resistance level coming in at 16413. Both levels are possible. Should the NQ put in a corrective 4th wave decline – I will be able to add an additional layer of Fibonacci extensions to reflect the minute wave 5 resistance zones and the possible completion points for the Intermediate “B” wave.
November 3, 2021