Monday’s trade did follow through to complete the small subminute 4th waves in both the ES and NQ. The ES followed through as well on the downside giving confirmation that the morning high did complete the small 4th wave with a subminute 5th wave now in progress and already has moved to a new low under Friday’s low. The NQ on the other hand found some stronger buyers in a few of the larger tech stocks. Of note was AAPL, AMZN, MSFT and TSLA. All saw gains for most of the session but did drop during the afternoon and all, but AAPL finished lower on the day. The NQ has not moved below Friday’s low yet, but I have marked the completion point for subminute wave 4. This wave was larger than I expected but I am accepting it as complete and on the subminute degree since the move did not violate any of the rules.
For tomorrow, the “stair stepping” lower should continue, with subminute 5th waves now in progress. Once complete look for the next degree up to start its own 4th wave bounces as the markets continue to stair step lower. Remember, the larger 3rd waves in progress have subdivided 4 times and now that the 3rd waves are completing the process of stair stepping appears as 4th and 5th waves are put in. Ultimately and as I review in tonight’s update Intermediate wave 3 levels should be met.
I also again review the larger picture Fibonacci levels, which have not changed. I also discuss and run Fibonacci extensions for completion points on the subminute, minute and minor degree levels for their respective 3rd wave declines.