Because ES violated support at 3,866 we have to consider two new scenarios that do not expect ES to immediately make one more higher high.
Under the most bearish scenario the top made at 3,912 on Monday was the top of corrective wave -X- up.
This red count argued that a new five wave down decline in wav e-A- down has started.
The blue bullish count considers the top made on Monday as subwave -A- of wave -V- up.
And off that high ES should decline/consolidate in a corrective subwave -B- down targeting 3,850 (50% retracement fib) 3,827 ( 66.7% retracement fib).
After that correction making a higher low bull would be able to produce a strong rally in subwave -C- of wave -V- up.
We discussed that scenario today.
NQ made a lower low on Tuesday evening and that makes me consider a bearish alt.
Technically speaking NQ still holds over support 13,034.
But if we zoom-out we can see that bulls have not pushed NQ over the meaningful resistance at 13,400.
This is why we still can consider NQ within a five wave down impulsive structure off the top made at 13,900 in mid Feb 2021.
That count considers the large -a-b-c- up pullback as a corrective wave -iv- up.
And we can count the last high made at 13,328.25 on March 1st as subwave -b- up. That count allows bears to push NQ down in subwave -c- of wave -v- down to a lower low.
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