Friday’s trade saw strong selling and a break below the weekly 200 MA – followed by a late very intense buying push take the NQ up over 300 points from the low. Friday was an expiration and I feel that the break back above and the algorithms being triggered to step in and buy along with a strong push in AAPL bringing the stock up from 133 to above 137 was an incredible feat, which forced huge adjustments in the expiring options. All in all, it produced strong trading opportunities that produced very large profitable trades along the way.
I’ve adjusted the Elliott count to reflect the moves on Friday. Nothing at this point is suggesting we just go up from here. Nothing has changed in terms of the reasons the market is going through a “repricing” period while adjustments are made for inflation and higher rates. With that in mind, the Elliott count remains the same in that I am still expecting at least one additional Minor wave (5) down to reach the targets below 10,000. The count itself was update to reflect the 11491 low being the completion point for Minor wave 3. If this is correct then the NQ is now in the process of tracing out wave A of the Minor wave 4 bounce.
I lay out resistance and support levels to reflect the move — I will wait and reserve the count changes for another day as traders make adjustments and set the tone for the week.