Wednesday trade was a for the first half of the session a slow grind to nowhere. The reaction to the GDP was basically a “who cares” – little did most know that it was Jerome Powell’s voice that would lead them out of the wilderness. And to be honest it really was based on the word “could”. Powell mentioned that the FED “could” consider slowing the pace of rate hikes as soon as December. That was all it took and off to the higher ground the NQ and ES flew. Once the dust cleared I could see what actually had happened and both scenarios were presented yesterday as possible. So, the NQ finished its “X” wave and actually back at the November 11th low. That then suggests that waves “A” and “B” of the second a-b-c structure are also complete with the NQ storming to the high ground within the context of a “C” wave.
Over in the ES, I have removed the “2” as in Intermediate wave 2’s completion point as this wave continues to surprise us and also be forming a double a-b-c structure. I lay out that path and review the Fibonacci extensions that should carry the move to the top of the second “C” wave.
For tomorrow, Jobless Claims and Personal Income and Outlay are released pre market – with the ISM Manufacturing Index is at 10 AM. All carry the weight to move things around some. We’ll see in what direction. But as someone noted to me yesterday and again today – bad news is good news and vice versa. How true is that today?