Tuesday’s traded was basically an inside day for the ES and the NQ.  Both reached sessions low right at the opening after both reached sequence highs yesterday to complete Minor 2nd waves.  Off of those highs the markets did manage to put in what is best viewed as 5 wave down to today’s session lows.  From those lows it appears that both the ES and NQ have completed A-B-C structures up into the closing highs.  If this is the case I would label the action off of the completion points for the Minor 2nd waves as minute waves 1 and 2.  This then suggests that what both the ES and NQ are about to tumble over into are minute 3 of Minor 3 of Intermediate 3 moves.  Expectations would be for more of a “free fall” type move as the wave 3 of 3 of 3 kicks in.

There are no major announcements due out tomorrow so again while I’m expecting a stronger decline it may be delayed as we all wait for the much anticipated CPI and Jobless Claims data due out at 8:30 AM EST on Thursday.  Initial the consensus reveals that expectations are for a continued improvement and a larger improvement at that showing the CPI inflation dropping below 7%.  Either way, Thursday is likely to push a supercharged move into all the markets.