There are two general rules-of-thumb I want you to understand. First, counts of the cash indices (like S&P or Nasdaq Composite) are much more reliable in general then their sibling, ES-mini and NQ-mini. Because when futures trade overninght on very light volume they often play really ugly structures and mess up counts. In contrst, the cash indices are not traded, they are calculated based on relevent baskets of shares.

The second rule of thumb is that ES-mini is the hardest instrument to trade and chart. It loves to give you a perfect topping pattern only to drag your short for another 20 points higher. That is why I trust more counts on Nasdaq and I prefer Nasdaq composite to NQ-mini.

Now let’s get down to business.

Nasdaq Composite has beennicely following my micro count. I expected a micro b down and it seems that we have got it this morning. As long as it holds support at 7,845 it may stretch higher to the target box. Then we would have the same dilemma is that the top of the whole five wave rally off Dec 2018 low or just the top of the micro wave ( iii ) up. In any of those cases we would get a nice pullback down to trade.