Off the Friday’s low NQ bounced in a corrective looking (a)-(b)-(c) up structure.
Today wave ( c ) up has tagged 100% ext of wave ( a ) up. That is the most straightforward wave count. We got a corrective (a)-(b)-(c) up off the low and it topped today.(edited)
However, I can not rule out an alternative scenario where bulls can push higher again before a bigger pullback starts. First, 100% ext of wave ( a ) is not the most reliable extension to nail the top of wave ( c ) up. Everyone knows about 100% ext and this is why in many cases it provides only a temporary resistance.
When we deal with a corrective (a)-(b)-(c) up bounce off the low we always focus on retracement fibs showing what portion of the preceding decline this bounce manages to retrace.(edited)
If bears are strong they rarely allow bulls retrace more than 41.4% – 50% of the preceding decline.
So far NQ retraced slightly more than 33% but less than even 41.4%.
As you can see the Red target box was defined by 100% and 123.6% ext of wave ( a ) up.(edited)
I prefer 123.6% ext over 100% ext when I watch for a potential reversal zone of a corrective (a)-(b)-(c) move.
On the 240 min chart below you can see a bigger picture. You should note that this pullback looks small in comparison to the preceding decline.
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