Tuesday’s trade was hazardous to the upside case for the equity markets.  Both the NQ and ES initially caught an updraft off the opening bell, but like so many things in life it was “fleeting” with the sellers quickly moving in and bringing the NQ and ES down into support levels given on yesterday’s update.  I have updated the hourly labeling and include some Fibonacci extension updates as well.  Both markets remain in the process of putting in the initial 5 waves down on the hourly charts to give strong confirmation that the Intermediate B wave is complete, and the larger Intermediate C wave is in the initial stages.

Also, tonight I review the 10- and 2-year notes along with the 30 yr bond.  The treasuries may be sitting at the precipice, which is also support levels that need to hold to keep the countertrend rallies intact.  The 2-year note appears ready to break to new lows under those established back in October 2022.  This would throw the countertrend rallies into a mass of confusion since it signals that the larger decline in bond prices and the larger rally in yields to pick up again.  I will be keeping very close tabs on the treasuries for additional signs of what is coming next.