Thursday’s trade was deceptive and still very volatile. The NQ initially pushed higher on the opening reaching the daily high at 16414 before turning and dropping in what I’m viewing as the “C” wave of minute wave 4. I discuss the formation of the move in more detail within tonight’s update – but the early rally when the chart is switched to a “line” chart does not show at all — on the hourly chart it is a huge topping tail. This keeps the overall pattern intact for now. Support at 16230 was broken with the NQ then also breaking below the hourly 200 MA. Next support comes in at 16100 and then 16052 to 15997. There is also support at 15893 which if reached could be considered a completion point for the 4th wave correction. I also detail the “alternate view” tonight and include the break level that would shift the alternate view into preferred status. For now though I am looking for support to hold and for the NQ to turn higher as the Minor 5 wave advance begins.
December 9, 2021