Wednesday’s trade was a strong statement about the power of Elliott Wave. The NQ started the session in a sloping decline and remained more range bound as the markets waited for the FED announcement. The initial reaction was a very quick push lower, which came within 6 points of negating any upside moves. However, the 15734 level held and the the 15740 low marked the completion point for wave 2 of 3. This left only one way to go and that was up – and up it went with power and size as the buyers retook control of the NQ and rallied over 300 points straight into the close. The move itself was a classic Elliott “3 of 3” move that I have spoken about so often. Yesterday’s update included another mention in that I described the NQ as having to begin to rally higher without looking back. That is exactly what took place – so again I’m asking those who are interested to take note of the move itself – the power and strength as it blew through resistance levels all along the way. This is what you need to see moving forward when the expectation is for a ‘3 of 3’ move. Ok, for tomorrow I expect the rally to continue with pullbacks likely being on the shallow side and hopefully held by the MA’s. The wave “3 of 3” move still needs additional upside before a 4th wave correction kicks in. So to complete the larger minute wave 3, a small series of a 4th and 5th wave are needed. Upside resistance to complete the move comes in at 16630. The larger Minor wave 5 in progress would be finishing wave 3 of 5, where again the NQ would be expected to put in a series of a 4th and 5th wave before the entire sequence is complete. Resistance for the completion of the Minor wave 5 remains at 16885 to 16977, and then 17075 to 17188.
December 15, 2021