Here is where I think we are on our way down to a bigger C-wave support for the S&P 500 and NASDQ 100 Indexes (both markets are forming a similar ABC corrective pattern) …
NASDQ 100 Index Futures Contract (NQ) – 60 Minutes Chart #1
I think that we have completed the first leg of the final C-wave of the ABC corrective price structure. It looks like we completed a smaller 3-wave lower in the A-purple wave count in that bigger red-C wave. Now we should be looking for a bounce into resistance which should have a minor abc-wave count. Then we should have a final flush down into the bigger C-wave support. That last leg down typically carves out a minor 3-wave structure – it is also typically ruthless and moves very quickly.
Where could the bounce to B terminate?
NASDQ 100 Index Futures Contract (NQ) – 60 Minutes Chart #2
It looks like we completed the purple A-wave with today’s price action … that lines up with my wave count of AAPL as well, so I think odds are we bounce from here until next week. A nice timing window exists at 1pm-2pm on Monday, November 19th. The last move down should be fun, and get everyone bearish into year-end, just when they should be looking to trade long out of bigger support.
Cheers … Leaf_West