Friday’s expiration took the markets on a more extended move lower.  The NQ was the more difficult to trade with plenty of sudden bursts of trading without follow through.  In any case, the NQ did manage to drop $344 before all was said and done.

The move itself does not leave me with much to add to the current picture.  I do include some thoughts on the potential for another record-breaking expiration coming up on June 17th.  I’ve not heard anything solid as to perceived direction, but I have presented both an upside view which includes a run back above 12900 and on up to above 13300.  Currently if we are still within a Minor wave 2 bounce – the market can be best counted as having completed wave A of 2 at 12945 from Thursday’s Globex opening. Wave “B” then is likely still in process and allows for a move to the 12382 area to complete and set the stage for a “C” wave bounce back at least to 12945 and potential for a continued move up to 13000 to 13300.

Conversely, should the NQ break below 12380 with strength it raises the possibility that the downside view is kicking in — and that would be in the context of a Minor 5th wave being in process.  This suggests that ultimately the NQ breaks below 11491 with a possible drop into the 10000 handle.