Tuesday’s trade gave the saying “turnaround Tuesday” a new meaning. The NQ turned and rallied strongly once the CPI number was released and showed inflation has reached 8.5%, but as I’m told it came in under expectations. Talk about rallying on anything today’s reaction would be high on that list. Nonetheless, the NQ raced to an intraday high at 14284, with the secondary top coming in 14278 before the sellers figured out there was a “fox in the hen house making chicken omelets.” The NQ declined for the balance of the day reaching a new low under 13902 achieved last night during the Globex session. Today’s session low was 13881 which gives support to the count and that the larger sequences of 3rd wave declines is continuing. Support levels for the sub-minute wave 3 come in at 13817, 13746, 13528 and then 13550 to 13216. Minute wave 3 support comes in at 13761, 13553, 13420 and then 13216. Ultimately, Intermediate wave 3 carries the potential to drop down to 9070 before completing.
April 12, 2022