I’m pretty sure that we have put in the low for wave 2 of 3 for both the S&P500/ES and the NASDQ 100/NQ today in the pre-market. I tweeted out the following charts this morning pre-opening of the cash session.
ES Daily Chart – Tweeted Pre-Market Dec 26th 7:44am
The S&P500 Index futures contract made a bounce off of the lower support line from the broadening price pattern I have been following – it hit it to the exact tick!!
NQ Daily Chart – Tweeted Pre-Market Dec 26th 7:53am
The NASDQ100 futures contract almost exactly matched the ES futures contract bouncing off of the lower support line, but missed it with a slight overshoot.
AAPL 30 Minute Chart #1 – Tweeted at 11:19am
I have a fairly large position in AAPL and I have been watching the intra-day charts
The confirmation of the break of the 30min ATR resistance level at around 1:45pm was the final confirmation for me today that we were going to squeeze right into the close of the market.
AAPL 30 Minute Chart #2 – Tweeted at 11:34am
I think we are in a typical 15 to 20-day rally period now and just looking at overhead resistance in AAPL, I think the bounce should be quite nice.
So where is the road maps for the S&P500/ES and NASDQ100/NQ now?
ES Daily Chart
So I have shown on a recent blog post why I think that we were just completing wave 2 of a 3-wave structure … that means we will bounce into the SLOT resistance zone for that 2nd wave, and then head down to bigger support thereby creating that 3rd and final leg of this bigger corrective move off of the all-time highs.
My timing window is for around the 1.382x time slot (Jan 25th) and I would expect the median line from the broadening pattern to provide resistance at around the 2564 level.
Wave 3 would then be expected around the 2245 level and for support to be found at around March 18th.
NQ Daily Chart
Same 3-wave structure expected for the NQ … resistance should come in around Jan 28th and register at about 6652. Wave 3 support would then be at around 5684 and come in at about March 20th.
Cheers … Leaf_West