Monday’s trade continues to keep current analysis in check. The NQ basically produced another “inside” day although a lower low was created today at 12540, which basically is where the hourly 200 MA is sitting. There are no changes to make. The upside view as well as the downside view remain active and in play. The market remains influx as to direction that will be sustainable for the next week or so.
For tomorrow, I continue to favor the NQ being in the process of tracing out a Minor wave 2 countertrend correction. Within wave 2, the NQ has completed wave “A” at last Friday’s 12945 high suggesting that wave “B” of Minor 2 remains in force for now. The NQ may still drop down to support at 12368 to complete wave “B” of Minor 2 and set the stage for a stronger rally back up and over 12945 as wave “C” of Minor 2 unfolds. Wave “C” once underway carries the potential for an ultimate climb back above 13000 with resistance being found at the Daily 50 MA at 13037, Fibonacci resistance at 13380 and then 13825. The Daily 200 MA sits above it all at 14154.
Stronger downside would begin to support that the Minor wave 2 correction is complete at last Friday’s 12945 high and that Minor wave 3 down is underway. If this is the case, I would be looking for confirmation via the break(s) below the moving averages and below support and ultimately a break below 11491 would seal the deal that Minor 3 is in full swing.