Thursday’s trade continued the string of wild and somewhat crazy days. Both the ES and NQ caught several down drafts today with volume increasing as the sellers became stronger. I can’t just yet declare the larger Intermediate B wave as complete at last week’s highs. There remains Fibonacci .382 support in both markets that has not been challenged yet. Therefore, I need to leave open the possibility of a “Hail Mary” play taking place. A break below Fib .382 support would tilt the compass towards the highs being in and the Intermediate B wave being complete. While I don’t like the pattern off the highs to today’s close – I will should the market continue lower and pick up speed figure out the count and post it accordingly.
Friday is expiration and while I did check the ES options and the QQQ options for clues – there weren’t any glaring strikes that were screaming out to me. I am seeing the topside being lowered a bit within the ES with the 4150 strike being popular today. So, all in all there remains the potential for a strong spike like move back to the 4200 area in the ES and the 12950 area in the NQ — while it may look impossible from current levels — I have learned the hard way never to say never. Particularly when it comes to the NASDAQ and S&P.