Tuesday’s trade came with an early surprise from the Bank of Japan during the Globex session.  Both the ES and NQ took a brief but strong ‘nose dive’ along with the treasuries, which at the time began to look a bit like a “crash” was starting.  Once European markets opened though, the buyers moved in and stabilized prices.  I have again adjusted the labeling to reflect the move and hopefully the final completion point for the Minor 1st waves.  Minor 2nd waves in process now look to have completed their respective “A” waves – remember Minor 2 will consist of an A-B-C structure – and are tracing out what appears to be a small “B” wave triangle.  The resolution of the triangle would be a thrust higher as was “C” of Minor 2 unfolds.

I add Fibonacci extensions with an estimate on the actual low for the triangle B wave.  At 10 AM EST the latest Consumer Confidence data will be released along with Existing Home Sales –

Once Minor wave 2 is complete I will be looking for a return to a stronger downside move to usher in the beginning of Minor 3rd waves.  This would also be considered the “3 of 3” move since it would be Minor wave 3 of Intermediate wave 3.