Tuesday’s trade while moving and holding higher levels gave me the feeling of a slow inside day. The NQ continues to trace out what I’m looking to label as a “C” wave up within a minute 4th wave correction. Thus far the NQ has reached above the hourly 200 MA – failed and dropped back below – attempted to break back above it a couple of times and failed each time. The small pattern in force at the moment continues to allow for an additional pump/pop higher – again as the focus narrows to a few select components in the index. Expectations then remain for a minute wave 5 down is still waiting to begin and carry the NQ back below 11068 and eventually below 11000 to 10300 before the next bounce comes into the picture.
For tomorrow, allow for a continued rally to reach – first, above the hourly 200 MA – second, above 11680 to 11700. Fib resistance comes in at 11750 to 11760.
A break below the hourly 20 MA at 11539 begins to weaken the upside picture, with a break below the 50 MA at 11465 supporting the top of minute wave 4 being “in” and the wave being complete. A break below 11400 should seal the downside deal.