Wednesday’s trade started out to the upside for the ES and the NQ, but quickly got caught up in a strong downdraft with both the ES and the NQ dropping with what I’m labeling as “C” waves within ongoing 4th wave corrections — of a minute degree in the ES and a Minor degree in the NQ. Both markets appear to need additional downside before the moves are complete. I discuss how that might unfold and review Fibonacci retracement levels as well as the possibility for extended moves in both markets. Once complete though I continue to look for 5th waves up to complete the larger patterns still in progress.
Tomorrow pre-market the Initial Jobless Claims data will be released at 8:30 AM EDT with Wholesale Inventories at 10 AM EDT.