Tuesday’s trade was following the “plan” until the BOE chimed in and passed a “threat” to the Pension funds in the UK that they had 3 days to sell their bond portfolios back to the BOE. That brought out the sellers here in the NQ and ES, which are already under pressure from the litany of problems and worries that are circling the U.S. financial markets. I’ve updated the Elliott labeling and detail what we can expect to see for both an upside and downside move. I also review support and resistance.
Tomorrow pre-market the PPI data will be released, and the surprise would be that there isn’t a reaction. Whether the NQ and ES do a “pop and a drop” or a “pump and a dump” I’m looking for a reaction. I discuss each scenario and also bring the Elliott picture and Fibonacci.