Monday’s trade was very much in line with expectations with volumes on the low side and both the NQ and ES moved lower as wave “C” of “X” continues to unfold. Moving into Tuesday, I am still looking for additional downside to complete the “X” waves in both markets — I review Fibonacci extensions in place for the internal “C” waves of “X”. I also review the retracements for the expected balance of Intermediate 2nd waves still in progress.
I would expect Tuesday to unfold in the same manner as Monday. However, the difference could come if the “X” waves complete during the Globex session with the NQ and ES turning higher as the second “A” wave gets underway. With all of this week’s economic data being released on Wednesday morning, it would be the day that we may see a stronger reaction to the data driving the market higher or lower.