Wednesday’s trade saw the “Christmas rally ” come to town. By the end of the session very little across the spectrum closed in the red. On an Elliott basis, the ES and NQ remain in the process of completing Minor 2nd waves. The structure continue to support the moves and I’ve restated Fibonacci retracements for Minor 2 and reviewed where the markets are with regard to the A-B-C structures.
For tomorrow, premarket the GDP and Jobless claims data will be released at 8:30 AM EST. If Fibonacci resistance is reached and holds during the Globex session with a negative response to the data released premarket – the potential for the Minor 2nd waves to be complete and the Minor 3rd waves being underway would be high. Remember the tone change to give support to Minor 2 being complete and Minor 3 being underway is a quick and strong thrust lower that quickly breaks below moving averages and additional Fibonacci levels.