Thursday’s trade was awesome as a trading day. The markets moved strongly in both directions and that produced numerous opportunities to trade from both the long and short side. The Elliott Wave picture though gained some clarity today and accordingly I’ve made adjustments to the labeling within the Minor 5th waves. The declines that I was counting as minute 4th waves drifted too far down and negated themselves in both markets — the result being the pattern completed at yesterday’s highs completed minute 1st waves in both the NQ and ES. The ES is presenting an additional challenge in that the overall pattern for Minor wave 5 may be forming a diagonal triangle. The updated count in both markets suggests that minute 1st waves are complete at yesterday’s highs with minute 2nd waves completing at today’s lows. The launch off of the lows would then be the beginning stages of minute 3rd waves. Upside targets for the Minor 5th waves remain in place and as the waves progress I’ll be able to add additional Fibonacci extensions.
Tomorrow pre-market @8:30 AM EDT Nonfarm Payrolls & the U.S. Unemployment rate will be released. @ 2 PM EDT – Chicago FED president Goolsby