Thursday’s trade was again astounding and again on several levels. The NQ did start the U.S. session higher before catching a down draft and turning negative for a brief moment. Once the buyers returned there was no turning back with the NQ launching higher and reaching a high at 13542 with today’s low being 13033.
I have made an adjustment to the Elliott labeling which I have discussed previously and have now moved from alternate to preferred view. Tuesday’s low at 12801 is now the completion point for minute wave 1. This then suggests that the rally off that low up to and including today’s high is all or nearly all of minute wave 2. The labeling change does not suggest the larger counts have changed or the move that lies ahead will not be destructive, volatile, and all around wild.
For tomorrow, remember that it is Friday and at that a weekly expiration Friday. With that in mind if the market continues to break down from here it should be a quick and painless move to break below the hourly 50 MA. As well as price support at 13114 down to 13090, then 13033. Fibonacci support comes in at 12904, 12571, 12262, and then 11443, which is where I believe minute and Minor wave 3 will likely come in not necessarily the same level but the same “zone” so to speak. Ultimately, I continue to look for the larger Intermediate wave 3 to find support to complete at the 9075 area.