May 18, 2022

NASDAQ 100 / The Eye of the Storm Podcast 5/18/2022 by Michael Filighera

Tonight, is another Eye of the Storm Podcast as I move the discussion into a trading discussion.  I hope you find it useful in understanding what I am expecting going forward from the NQ.

Wednesday’s trade was a slow and steady grind lower.  The NQ topped at yesterday’s Globex opening with the market dropping without pause today.  The NQ finished the session at 11940 and dropped to a low at 11863 after the close.  It looks and feels like the minute 3rd wave is active in larger continuations of the Intermediate 3rd and the Minor 3rd waves.  So basically, we have a 3 of 3 of 3 move in progress.  And the trend is down!

All previous analysis remains valid, all previous support and resistance remains valid.  We may get a few stronger down days before a stronger more sustained bounce takes over.

As I discussed in the update – there remains potential for the NQ to once again turn around and rally higher and once again get “gummed” up around the 12600 to 12800 level – a break below 11689 invalidates the upside for now.

Downside support comes in at 11689, 11434, 11271, 11119, 10717, 10496, 10275, 10001.  Ultimately, expectations remain for Minor wave 3 to find support to complete at 9613 to 9550, with Intermediate wave 3 finding support to complete at 9070 to 9055.