Are we at resistance here? To me it looks like it …
NASDQ 100 Index Futures Contract (NQ) – 120 Minute Chart #1
It is pretty clear that the bounce off of the Dec lows is a 3-wave structure. From our price structure rules, what do we know about where wave 3’s terminate? They typically terminate at around the 1.272x extension target drawn off of wave 2 … that would make our target zone around 7016.50 for the NQ contract.
What about a time window? Typically wave 3’s will be equal to 50% -61.8% of the time taken to complete wave 2’s … that would make our window from 10pm last night up until 2am tonight.
The high made today in the NQ was made 9:34am and it was at 7038.75 … so we have made what looks like a complete 3 wave structure at around the typical price target in the time window that would normally occur – what about the actual look of the final 3rd wave? That typically will also form a smaller 3-wave price structure.
NASDQ 100 Index Futures Contract (NQ) – 120 Minute Chart #2
So it appears to me that price has completed a smaller 3-wave price structure in the final bigger wave 3 … there is nothing else that I would normally expect to see when looking for a logical place for resistance to hold.
NASDQ 100 Index Futures Contract (NQ) – 240 Minute Chart #1
The above chart is a 240-min chart … again, an obvious 3-wave structure can be seen pretty easily. Also, price has stopped right at the bigger 61.8% resistance level.
On the move lower to the next major area of support, I would expect
NASDQ 100 Index Futures Contract (NQ) – 240 Minute Chart #2
The first support level should show up around 6630 and take place around Feb 18th … the final support level should be around the 61.8% level or 6285 and occur somewhere between Feb 26th and March 4th.
Cheers … Leaf_West