Friday’s trade was chock full of expiration volatility and in both directions. It was another session with more opportunities to trade as a scalper, swing trader, position trader, futures trader, or options trader — plenty for everyone. That fact that the interest in trading remains very high — is a good thing – taking advantage of it should not feel like burden but a gift that keeps giving – even if you make a mistake or three along the way. Just keep trading!
The NQ did finish 5 waves down off of the 13555 high at Thursday’s 11689 low. I have again replaced the alternate view with the preferred view – and sorry for any confusion — they are interchangeable as the entire picture remains in process. I have moved the Minor wave 1 and 2 back to the preferred view with Thursday’s low being the completion point for a minute wave 1 with yes that’s right – another minute wave 2 in progress. The good part is that the market does clear things up as it declines, which keep the larger picture on track to reaching lower levels discussed on the “big picture” updates.
For tomorrow, expectations would be for the upside to continue. Minute wave 2 will consist of an A-B-C structure. Off of the 11689 low it appears that waves A and B may be complete, which suggests that again off the lows on Friday the NQ is forming wave C of minute wave 2. Currently the hourly 200 MA at 12500 is holding upside. Fibonacci resistance should be found at 12624, (50%) and then 12845 (61.8%). Once minute wave 2 is complete though the next step will be a turn down that should kick in quickly and powerfully. It will be the continuation of the 3 of 3 of 3 move — The overall move itself suggests that breaking 11689 should not be a problem with 11000 also not being a problem.
Fibonacci downside support for the larger Minor 3rd wave comes in at 11540, 10993, 10308, 10014, and then 9409.