Monday’s trade did not move outside of any parameters set with yesterday’s analysis. The NQ did manage to move to a new high for the sequence at 14467 before starting to decline. Initially I was looking for the formation of 5 waves down on the hourly chart and felt the NQ was off to a good start in putting that in. However, it bounced off of the hourly 50 MA and then rallied into the close which leaves a 3 wave pattern down thus far. That does leave the potential for continued upside before the Minor wave 2 correction is complete, which keeps the potential alive for a move above 14467 and then above 14500. Fibonacci resistance comes in at 14644 and then 14845. Downside would need to be confirmed by a stronger break below the hourly 50 MA at 14218 and then support at 14024. Confirmation of the Minor wave 3 being in force would be the formation of 5 waves down on the hourly chart which would include a solid break below the hourly 200 MA.
March 21, 2022