Monday’s trade was total “bounce” like with several quick runs higher and quick turns lower.  All in all, a bounce in a continuing decline.  I’ve left the Primary degree wave B labeling in place with the initial labeling for the start of Primary wave “C”, which will consist of 5 waves down of Intermediate degree. Within this count, Minor waves 1 and 2 are complete with the Minor wave 3 kicking off from Friday’s early high.  With the Globex low just above 12400in the NQ and 4000 in the ES. I’ve labeled it minute wave 1 – the extension begins!

For tomorrow, allow for additional chopping higher with the targets being the 38% Fib level and the 50 MA’s.  Once complete I would look for the downside to pick up again and gain traction and speed on the “quick” side. Breaking the 12400 low in the NQ and 4000 in the ES should not pose a problem.

If reality has set in – I suspect the day “to breath” didn’t bring any clarity to a stronger upside reaction.  Without some kind of support/reason to buy the next round of selling will get anxious and get more aggressive. Volume was above the average for the past several months giving support to the downside continuing.