Monday’s trade was a continuation of the upswing after the gap down Globex opening on Sunday. The NQ did manage to close the gap and push back above 14200. I was a bit premature in labeling Friday’s high as the completion point for Minor wave 2. As it turned out Friday’s 14196 high was the completion point for wave “a” of 2 with the gap down to 13683 being the end of wave “b” of 2. Thus, we remain in the process of tracing out wave “c” of 2. Resistance comes in at 14406, 14508, and then 14600. It seems that this zone should be able to contain the balance of wave “C” and complete Minor wave 2. However, should the push be stronger there is additional resistance at 14853 and then 15130. At this point I am not expecting that strong of a move. Pull backs are likely to remain shallow at this stage. If the NQ starts to break down below the hourly 20MA at 14066, the 200 MA at 14003 and then the 50MA 13952 the Minor wave 2 would likely be complete.
February 28, 2022