Thursday’s trade was again supportive of the current preferred count with both the ES and NQ sliding lower again. I’ve updated the internal count as the markets begin a larger Intermediate 3rd wave down. The ES and NQ remain in the initial Minor wave 1 down and the labeling shows that today’s lows likely completed subminute wave 3 of minute 3rd waves. This suggests a small 4th wave and a small 5th wave down to complete minute wave 3, which should be followed by a minute 4th wave bounce and a minute 5th wave down to complete Minor 1. Once that is complete look for a bit larger Minor wave 2 countertrend rally before the markets slip lower again within the context of Minor 3rd waves down. I also add Fibonacci extensions for Intermediate wave 3 and minute 3rd waves.
Friday is a quadruple expiration cycle and may or may not be volatile with most of the adjusting happening today. However, with the wave count continuing to show downside anything could happen. The PMI Composite Flash comes out at 9:45 AM EST.