Friday’s trade was in line with expectations with a stronger move up in the NQ than the ES, but both did reach next level resistance. Tonight, I present what I’m now using as an Alternate view or count for both the ES and NQ. Being that both are operating with the same count I’ve updated the ‘cash’ markets – SPX and NDX with the alternate view — I also discuss the implications and add the Fibonacci retracements to give some parameters should the markets continue higher. I also discuss and show the break point where the alternate count would be moved to Preferred status.
I update the Preferred count as well including the labeling and what I expect from here. I update the Fibonacci extensions for the balance of Minor C waves to complete the Intermediate 2nd waves. Internally, the ES and the NQ are likely pulling back in small minute 4th waves and once complete we can put in Fibonacci extensions for the remaining minute 5th waves.
I also include the economic data due out this week starting on Tuesday with the PPI. For tomorrow then, in anticipation of the markets loving the PPI as much as they did the CPI – the ES and NQ may continue to work higher and possibly complete minute 5th waves, Minor C waves and Intermediate 2nd waves. The Preferred count continues to suggest that next up would be an Intermediate wave 3 down for both the ES and NQ. This week should let us know which count rules for the short term.