I was hoping to see a bigger drop than we did; I’m glad we saw a drop (it would been painful to be on the wrong side of that), but without deeper selling, we risk a pretty bullish setup here.
I pointed out a few things today (here), and I found a way to count the Naz as a correction (here), but the count I provided for the S&P (here) works well on the Naz, too, so I’ve reworked that and will share it.
So, note the 78.6% retracement on $NQ here. Good spot for a 2. Note the potential inverse forming. This is why taking out prior lows is so important, so we don’t form stuff like this. Wave 3 target is the orange box, the measured move for the inverse as a whole is even higher, and I’ve stuck the minute (blue) 5 up there where that measured move is.
I just shared this count for $ES, but did not provide a wave 3 target, so here it is (note an inverse-like structure on this as well).
I am presently unsure on the Russell and the Dow, so I will keep watching those for the time being.