Tuesday’s trade may not have looked like a “barn burner” but it was and then some. The NQ took out the triangle pattern and brought back a zigzag pattern, (A-B-C) to complete Minor wave 4. The money flow was also strong, as dollars come in to be placed rather than exiting and looking for a place to be.
I discuss tonight the difference between looking at the markets “objectively” versus “subjectively” and how that is applied to trading.
For tomorrow, I would expect additional upside whether that happens overnight during Globex is TBD. Upside Fibonacci resistance comes in at 12360 to 12500, 12550 to 12675. Wave C currently unfolding appears to be in wave 3 of C with a small pull back likely with additional upside still needed before wave 3 is complete and in turn waves 4 and 5 of wave C.
Should the market break down from here -12300 to 12350- as it has before the move may be as swift as well and would result in a quick break back below the 8 and then 20 MA’s. Support should be found at 12160, 12100, 12040 to 12015. A break below 11800 would begin to turn the picture more negative and suggest Minor wave 4 may be complete.