Monday’s trade saw the start of “position squaring” as we approach Friday’s end of quarter, (second quarter). The AI sector seemed to grab most of the attention today with the NQ seeing the strongest slide lower. I talk often about the “look and feel” of a particular wave pattern and that came to mind today as I was continuing to view the current declines in the NQ and ES and 4th waves of minute degree. The look and feel in the NQ began to suggest I look at the alternate count which I have been running on the NDX – and after today’s moves I am presenting it with the analysis for the NQ. The largest change being that what I had marked as the completion point for minute wave 3 of Minor wave 5 in the NQ and the ES is now being marked as the completion point for the Minor 3 in both markets. This does allow for additional downside before the Minor 4th waves would be complete and cleans up the “look and feel” of the overall pattern. I have also adjusted the Fibonacci retracements adding additional downside targets to complete the moves in progress.
Tomorrow pre-market, Durable Goods Orders is reported at 8:30 AM EDT, at 10 AM EDT New Home Sales and Consumer Confidence will be reported.