Wednesday’s trade rang a familiar tone from an old “bad?” song from the 60’s – the lyric was “second verse, same as the first” and that sums up today’s trade! The NQ continued lower for most of the Globex session but found that strong buy support to come into several of the tech titans which in turn pushed the NQ back into positive territory and above 11700.
The NQ also broke back above the hourly 200 MA and got some nice follow through – only to be followed by a “failure” and a drop back below the 200 MA with follow through – with the tug of war continuing and another break above with nice follow through with yet another failure! After the zero-sum game the NQ continues to be within the minute 4th wave countertrend correction. The NQ remains at a point where, today’s high completes minute wave 4 or the NQ rallies from the start of Globex and breaks to an additional high above 11745.
For tomorrow as long as the moves are of the same stature as seen today, trading should be profitable. The volatility is holding which is producing the nice swings. I discuss the parameters for both the upside and downside within the update.