Tuesday’s trade for most of the session saw strong upside gains. In fact the ES and the NQ both ran up and smacked into resistance levels – 3875 in the ES and 11728 in the NQ. The markets basically finished the session at the highs and then MSFT and GOOGL reported. MSFT beat by 3 cents and GOOGL missed by a fair amount for GOOGL. The initial reactions were swift and severe, pulling several other components with it. Remaining of importance are META tomorrow and AAPL, AMZN, and INTC on Thursday. Also, there remains economic data to be released as well. Tomorrow, International Trade in Goods and New Home Sales and on Thursday, Durable Goods, GDP, and Jobless Claims. I can’t say just yet, but the rally could be complete or nearly so as we await to hear the voice of the proverbial “larger” lady sing.
I do review both view #1 and #2 making a switch in the order there. I review the labeling and what are the possibilities from here. I review the remaining Fibonacci resistance levels to come should the rallies continue. And I discuss what I’ll be looking for should the market have completed Intermediate wave 2 at today’s highs.