Wednesday’s trade was strong in both directions as the ES and NQ worked through what I’m labeling as the first 5 waves down to complete Minor wave 1. While I continue to leave open the potential that Minor wave 1 is still in process with the minute 5th wave continuing to extend, I am getting additional confirmation that the Intermediate B wave is complete as labeled. If, Minor wave 1 is complete at today’s lows, expectations would be for a Minor wave 2 to unfold. Initially, I would be looking for a countertrend rally and have included the Fibonacci retracements where the most common levels for a wave 2 are the 50% to 62% levels. Additionally, as I stated in the update the labeling is subject to change both in degree and wave count.
For tomorrow, pre-market the GDP and Jobless Claims data will be released at 8:30 AM EST. Both are “market movers” and can carry strong signals as to the direction of interest rates.