Thursday’s trade was a reversal of what took place during Wednesday’s session. Leaving yesterday’s rallies possibly as the complete Minor 4th wave bounce, I was looking for. While the NQ did move to a new low under Wednesday’s Globex low, the ES did not. This leaves open the potential for today’s actions being wave B of Minor 4 with a C wave up still out there to occur to complete Minor wave 4.
I review the Fibonacci extensions for Minor wave 5 with the probability that it is in progress for both the ES and the NQ. I also review the position of the moving averages should the markets put in another rally to finish Minor wave 4. Otherwise, I will be expecting Minor wave 5 to continue and reach Fibonacci levels as described in tonight’s update.
Tomorrow is the weekly expiration cycle which undoubtedly carries the strong potential for a volatile day.