The emotion into the December 26th low and the large/strong 3 wave structure formed during the bounce from that December low confirms in my eyes the following price structure of the correction from the October 2018 high …
NASDQ 100 Index Futures Contract (NQ) – 240 Minute Chart #1
With the push today above the January 18th high (wave 2 high), it looks like we are completing a 3 wave structure into the down sloping line drawn off of the prior highs right around the 50% retracement level drawn using the Oct highs and the December lows as the anchors.
If that read is correct, we should be heading down into SLOT support on the next move. That would be a corrective wave, and will be followed by another push higher, possibly right into the 61.8% resistance level around 7000 on the NQ.
NASDQ 100 Index Futures Contract (NQ) – 240 Minute Chart #2
The above chart gives a better look at the 3-wave structure of the bounce from December … could we have made the high for this first bounce on the very day that the Fed gave the market everything it was crying about? It sure looks like it to me.
Cheers … Leaf_West