More of an inside day for both the ES and NQ – with heavier downside appearing within the DJIA and the ES. I update the labeling in both markets to reflect the 2 counts that I’m working – again allowing the markets to tell me intent – While in the ES both counts continue to argue for additional upside the difference comes via the expected levels. I review the current action which remains corrective and again review the Fibonacci levels that correspond with what may be left to do on the downside as well as expected levels for the next leg up. In the NQ I revert the labeling to the “other” preferred count that I have previously shown – electing to show the ‘other’ count as an introduction to it. I also update the internals created with today’s trade – included are Fibonacci levels in both directions. Tomorrow pre market @ 8:30 AM EST – Import Prices, Retail Sales, @9:15 AM EST, Industrial Production, Capacity Utilization, and Business Inventories, @ 10 AM EST – home builders confidence index and at 2 PM EST – Fed Beige Book.
January 16, 2024