Friday’s trade included a new high for the sequence and a rejection of that high with a solid move lower ensuing. The NQ did manage to poke its nose above 12700 on Friday, but the “hammer” finally caught up with the “mole” in the proverbial game of Whack a Mole. The NQ slid below 12600 and 12500 to finish the session closer to 12425.
For Monday, I’m leaving open the potential for a last push or another challenge of 12700 to 12800. I would suspect though that the challenge would be surrendered with another rejection of the levels. Elliott counts remain open as well, with the Minor 4th wave still tracing out the “C” to complete the move.
If, though, Friday’s high did complete Minor wave 4, it would suggest the decline continues with rallies holding below 12550. Downside should again pick up speed and not much trouble breaking below the Daily 50 & 8, both hanging out at the 12265 area. Support under should be found at the Daily 20 at 12097. Additional Fibonacci levels are discussed in the update.