Monday’s trade was an extension of the buying from last week. Today, though it seemed to be largely focused on AAPL, which saw a strong rally tack on $6 to the price of the stock. That strength did not necessarily lend support to the balance of the markets. Globex has started with an additional push higher in both the ES and the NQ with a pullback needed but may or may not occur. I review the overall position for view #1 (Intermediate wave 2 in progress) and view #2 (Intermediate wave C in progress to complete the Primary B wave countertrend rally.) I also discuss Fibonacci extensions for the views in progress as well.
For tomorrow, expectations would be for the current rallies to find a top and pullback before again moving higher. Resistance levels given in tonight’s update remain valid and are within range of being met. Also, the probability scale has increased to 50/50 for an Intermediate wave 2 being in force or an Intermediate wave C. I discuss levels that would tilt the scales in favor of either view #1 or view #2.