Thursday’s trade produced an inside day with both the ES and NQ breaking to new session lows during the hour after the close. Globex has just opened, and the markets are continuing to head lower.
There are no changes to the labeling or to view #1 or #2. Both continue be valid and I lay out what to expect to give us confirmation of direction and ultimately what the larger counts will be. I also review resistance and support levels both Fibonacci and accordingly to where the MA’s were situated at the close.
Tomorrow is expiration and the Employment Situation data will be released before the open. I would be expecting a reaction one way or the other to the Employment data. That may then have a stronger pull-on expiration. Remember as the markets move strongly in either direction it pushes prices through strike prices within the underlying component companies with the ES and the NQ. This will result in adjustments being made to expiring positions and that can produce a more volatile market.