Wednesday’s trade presented a more difficult trading day with longer periods of chop with larger swings mixed in. It appears though that both the NQ and the ES finished their respective Intermediate 2nd waves. The ES made a new high just below 3900 and the NQ ended in a 5th wave failure at 11704 with the high of Minute wave 3 being 11734. Earnings continued to flow with META being the bearer of bad news with a sizeable earnings miss and a strong and quick slide lower — As I write this META is now trading below 111 after closing at 129.82 and trading as high as 142 right after earnings were reported. With the likelihood of Intermediate 3rd waves now in its beginning stages it suggests the trend is again in force and that trend being down.
Thursday pre-market there are several economic figures coming out — Durable Goods, GDP and Jobless Claims — anything less than stellar is likely to garner a stronger negative reaction. Tomorrow after the close AAPL and AMZN report – and unless they both “blow the doors” off of their earnings I would be looking for another negative reaction – the actual report will determine how strong the moves might be.