Tuesday’s trade caught a down draft in both the NQ and ES. Both markets hit session highs during Globex with both reaching resistance levels given on yesterday’s update. I’m counting the current down moves as small 4th waves, which suggests there are still 5th waves up to complete before the entire sequence, an Intermediate “C” wave and in turn a Primary “B” wave are complete. I review upside resistance and the potential for both markets to reach higher than what may be expected. Again, while I say it is possible, I am not saying that is what the markets will do.
Premarket, look for the ADP Employment data at 8:15 AM, the US Trade Balance at 8:30 AM, the S&P final US Services PMI at 9:45 PM, and at 10 AM the ISM services data.