Wednesday’s trade was “solid” the first hour, but from that point both the NQ and ES have dropped into what is best viewed as a small 4th wave – but it is the “B” wave that is of interest – because it is forming a “B” wave triangle. The wave pattern does appear to have dropped back into very discernible impulse patterns. This hopefully will continue to translate into better trading conditions that provide clean set ups. I have updated the labeling with both the ES and NQ remaining within the first Minor wave 1 down. Within it and still needed before completing would be subminute wave 5 of minute 3 and then a minute 4th wave small rally and a minute 5th wave down. I provide Fibonacci extensions for the anticipated minute 5th waves as well as upside levels for the completion of the small 4th wave in process now.
December 7, 2022