Friday’s trade was controlled initially by the PCE data released pre-market. That data did show that inflation is not slowing but actually increasing which in turn will keep the pressure on the FED to continue their current path of interest rate hikes. On an EW basis, both the NQ and ES did end up extending lower within the context of their minute 5th waves. As Globex opens it appears that both the NQ and ES need an additional move down to finish the minute wave 5th waves and in turn Minor wave 1. I update the Fibonacci retracements and extensions giving some additional levels where the Minor first waves could finish up and set both markets up to begin Minor 2nd wave countertrend rallies. I also give estimates for the anticipated 2nd waves.
Tomorrow, pre-market the release of the latest Durable Goods Orders and Pending Home Sales will be released at 8:30 AM EST.