Thursday’s trade was impressive to watch and left me saying “What a difference an earnings report makes!” The NQ continued to get slammed lower on Thursday as the downdraft from FB’s earnings worked its way through the various component stocks. Add on top of that the markets perception of what to expect from AMZN as the company was due to report after the close. And report they did – the stock closed at 2777 and ran initially to 3000 before eventually reaching just under the 3400 mark. The NQ sank to a low of 14456 into the close managing to finish the session at 14502. After AMZN’s earnings the NQ shot up reaching 14821 after hours. It was the move I needed to see to give confirmation that the current Elliott count remains valid and in force. Yesterday I marked the 15260 high as the completion point for Minor wave 1 of Intermediate wave 5. Today’s low at 14456 is being marked as the completion point for Minor wave 2 of 5. This suggests the launch after AMZN’s earnings was the start of Minor wave 3 of 5. Wave 3 would be expected to carry the NQ back above 15260 and on up towards the 16000 level before completing. I have added the Fibonacci extensions for wave 3 and the larger Fib extensions for Intermediate wave 5.
February 3, 2022