In today’s podcast I update the “bigger” picture including both view #1 and #2 within the NQ and ES. In the NQ view #2 still has potential – in review it suggests that the 10484 low completed Intermediate wave 3 with the countertrend rally in process now being Intermediate wave 4. The structure itself would remain a double A-B-C pattern with the NQ being the 2nd “C” wave up. I also update view #1 where the 10484 low is the completion point for Intermediate wave 1 with Intermediate wave 2 still in process. Within wave 2 the NQ is tracing out the 2nd “C” wave to complete the Intermediate wave 2. Upside potential remains as show via the Fibonacci extensions.
In the ES, though, view #2 has changed with Friday’s end of day push higher breaking into the price territory of what would be labeled as Intermediate wave 1 – with the current view #2 negated it will be replaced with a more bullish count that suggests the 3502 low completed Primary wave A – and the ES is now in the beginning stages of a larger Primary B wave. At this early stage I would need to include the potential that the initial wave A wave up is forming a leading diagonal. I discuss this view but need to receive confirmation from the market and other factors that it is actually in process.
For now I discuss view #1 in both the ES and the NQ — for the ES it would be a double A-B-C pattern to put in an Intermediate wave 2. Within that wave 2 – the ES is within the second “C” wave. I discuss and show the Fibonacci retracements for Intermediate 2 and the Fibonacci extensions for the second “C” wave.