Tuesday’s trade seemed to get caught up in itself with the end result being a sell off.  The ongoing debt ceiling discussions continue to rule the headlines and eventually turned the markets lower.  The NQ, though, in the Globex session reached another high at 13979 before heading back down. The ES equaled yesterday’s high at 4222.  The EW patterns do present a more difficult picture with the NQ still being able to be counted working through a minute 4th wave correction, while the ES broke below levels it needed to hold to keep the current count intact.  What comes next is truly up in the air.  Did the NQ peak and the ES fail?  Possible, is there still the potential for the NQ and the ES to turn higher again and both reach suggested levels to complete the Primary B waves — yes, it can happen — however, as I have state previously it would be a finishing move – not the start or continuation of a larger move to new highs.

For now, I have left the EW labeling as is and presented both sides of the market for tomorrow.  It shouldn’t take much longer before direction and EW counts are made clear.