Friday’s trade did not pan out as much as I expected considering that Thursday’s low marked the completion point for the Minor wave ‘b’ of Intermediate wave 2. This suggested that the NQ would rally as Minor wave ‘c’ of Intermediate 2 began. The NQ ended the week making a new low at 14310 before bouncing slightly in the ‘after market’ to finish at 14328. Both scenarios then remain in play — however, I believe the NQ is at the point where likely during globes the decision will be made as to whether the NQ will continue lower picking up volatility and acceleration. Support remains at 14105 and this level remains critical to the near term picture. So for now both the preferred and alternate views remain valid with the market likely making itself clear — an upside break has to be with some power with the NQ breaking back above 14400, 14500, and 14600 without much hesitation or resistance. Downside should be presented in the same fashion in that the NQ would be expected to break quickly and decisively towards 14105. Should that level not hold with the NQ sliding through it would be very strong in favor of the Intermediate wave 2 being complete and the Intermediate wave 3 decline being in complete control.
April 10, 2022