Thursday’s trade supported the current analysis in that count thus far is holding and moving forward. The NQ started off on the choppy side and more on the range bound side. Once the sellers took control though the market dropped quickly breaking below the 20 and 50 MA’s before the buyers again took control. The volatility was strong in both directions as “vacuums” or “voids” were created by both buyers and sellers as large orders searched for value. It also produced a completion point for the minute wave 3 of 5 and wave 4 of 5. This suggests the NQ blasted off of today’s lows in the beginning of wave 5 of 5. It is subdividing which supports the entire move being more likely to reach 16600++. Thus far the NQ is just above 16500 and with tomorrow being a monthly expiration cycle I would suspect the NQ will hover close to 16500 for much of the Globex session. As well as the labeling I have updated the Fibonacci extensions to fill in some of the area between 16500 and 16800. All things remain on the table for now. The volatility and being in uncharted territory will leave many “voids” in terms of bids or offers being present as larger players move in and out of the market. Trade smart, use tighter risk management and adhere to your stops. Keep an eye on the moving averages on the hourly and daily chart and use the Fibonacci levels along with Elliott – combine let it guide your trading.
November 18, 2021