Thursday’s trade was strong in both directions. The opening saw the NQ climb and reach a high at 4391, which was just below resistance at 14403. The strong decline directly off the high leaves 14391 as the top candidate to have completed the Minor wave 2 bounce. I have labeled the chart accordingly and again the strong 250 point decline right off the high gives strong support to Minor 2 being complete and Minor wave 3 down now underway. Thus far I believe we remain in the first 5 waves down to form minute wave 1 of Minor 3. Expectations for Friday would be for the sellers to again take control of the market and begin to decline with stronger acceleration. Support levels on the way come in at 13863, 13729, 13537, and 13368. Should the NQ rally and break above the 200, 8, 20, and 50 MA’s it would suggest the Minor wave 2 correction is not complete and I would then be looking for additional highs above 14391 whether or not that would happen tomorrow.
March 3, 2022