Tonight’s podcast is longer as I update the situation and the EW count and the projected path for the markets.
Friday’s trade made very clear direction and the EW count moving forward. The NQ along with the balance of the markets rejected any bullish scenarios after the release of the CPI number on Friday. The CPI again confirmed that inflation is increasing and now being recognized as it sweeps through the sectors of the economy.
On Friday, the NQ tumbled from the opening making it an awesome trending day. The NQ slid quickly through 12300, 12200 and 12100 all before the U.S. markets opened for trading. Once open the NQ continued to slide below 12100, 12050, 12000, 11950 and 11900 before reaching session lows at 11850.
Sunday’s Globex started with a gap lower pushing below 11800, 11750 and 11700 reaching a low as of this writing at 11679.
I have adjusted the labeling on the Intermediate degree to be more in line with what I believe the market is actually doing. Under this labeling the NQ has complete Intermediate waves A and B, (formerly labeled as Intermediate waves 1 and 2). Within the Intermediate wave C, the NQ continues to have completed Minor wave 1 at the 11528 low, (basis the September contract), with Minor wave 2 now complete at the 12982. I am looking for 11528 to be broken as Minor wave 3 continues to unfold.
Fibonacci support for Minor wave 3 should come in at 11539, 11093, 10647, 10319, 10013, and then 9204. Resistance levels are likely to “tied” the area(s) of the Moving averages. I am not expecting a larger correction to begin for a few days.