Tuesday’s trade was corrective and as I have suggested many times before – I don’t like trading corrections. Mainly because there are so many false starts and sudden bursts higher and lower that just come out of nowhere and return to nowhere just as quickly. However, I prevailed and managed to have a lucrative and successful day.
The NQ caught a burst of upside energy reaching the session high at 12547 at the opening. Within that first hour the NQ did manage to also make the session low at 12170, spending the balance of the session attempting and failing to break to a new high above 12550. For tomorrow, we need to leave open the potential for another run up towards resistance at 12600 to complete the correction. Also, I have updated the labeling and returned to a count I had previously, but the subdivisions have cleared themselves up making the count more viable and in tune with the market. Trade off of the 12102 low is a small 4th wave which may be complete at today’s high if not leave open the potential for a retry at reaching 12600.
Downside Fibonacci support has not changed dramatically and continues to suggest the larger 3rd wave is likely to find support to finish in the 9075 area. Fibonacci support remains at 12017, 11655, 11431, 11068, 10935, 10482, and then 9895 down to 9075.