I have been mainly trading the NASDQ 100 futures during this corrective price action, and therefore, I like to keep a close eye on the price structure and timing windows. Here is my current read …
NASDQ 100 Index Futures Contract (NQ_F) – 240 Minute Chart #1
Unlike the S&P 500, the NADQ 100 Index made a bigger first wave lower. I can count 3 minor waves lower into yesterday’s low, and therefore I think we have begun the B-wave bounce in the current corrective price structure.
NASDQ 100 Index Futures Contract (NQ_F) – 240 Minute Chart #2
Where will the NQ’s bounce to? I think we are likely to make it back to the SLOT resistance zone and I have drawn the resistance level here at 7155 – that is my rough target currently.
NASDQ 100 Index Futures Contract (NQ_F) – 240 Minute Chart #3
If we turn lower at 7155, then the 1.272x extension target for Wave C will be around 6259.
Let’s look at deriving a timing window for Wave B and Wave C … we can do that by looking for prior turns in the waves completed so far.
NASDQ 100 Index Futures Contract (NQ_F) – 240 Minute Chart #4
The first leg lower (small wave-a), the small wave-b corrective bounce ended right at the 1.382x timing window. and the small wave-c ended right near the 2.382x timing window. Let’s draw the next wave to see where those windows ended up …
NASDQ 100 Index Futures Contract (NQ_F) – 240 Minute Chart #5
Using the next bigger wave lower down (small wave-a) to draw our timing targets, the small wave-b corrective bounce ended right near that same 1.382x timing window we saw in the prior wave analysis. and the small wave-c ended right at the 1.786x timing window.
Using these previous windows, let’s draw the big corrective wave pattern to see where our timing windows could end up …
NASDQ 100 Index Futures Contract (NQ_F) – 240 Minute Chart #6
So, wave symmetry makes me think that the bigger wave-B timing window should be right around that 1.382x extension target … that puts the B-Wave high in right around the December 10th in the 6am – 10am time slot.
Wave-C’s time window is not quite as sure thing as the B-wave based on the prior c-waves coming in at 1.786x and 2.382x. If we look at these time slots as a bigger window, we look for a bottom for Wave-C between Dec 30th and Jan 29th. That is a big window, and since we know that Wave C’s typically complete in 3-wave patterns, we should be able to get a good sense of the completion window when we start getting closer to what looks like a completed 3-wave structure. Bottom line is that we are likely to end this corrective pattern in early 2019.
Cheers … Leaf_West