Monday’s trade was less volatile than what was seen last week, but still included some strong rallies and declines. The NQ did manage to drop to a new low during Globex at 14031, which is best viewed as being the completion point for the minute wave 3. This suggests that today’s action during the U.S. session was most of the expected minute 4th wave bounce. It appears that the NQ will need a bit more rally before the move is complete with resistance coming in at 14388 to 14425, which I would believe could contain the move. The hourly 50 MA is just above at 14401 and again at this point I would not be expecting a stronger move to reach too far above the 50 MA. Once wave 4 is complete the NQ is still expected to drop again under a minute wave 5 decline. Support for the move can be estimated to come in at 14003, 13884, 13766, 13721, 13678, and then 13381 to 13359.
February 14, 2022