NQ - the big picture argues for bulls to make another shot higher into upcoming Labor Day
Note that NQ dropped out of the upward sloped price channel and then came back to re-test it from below.
That is a sign that bulls have run out of gas. The momentum is decelerating.
Now lets look at two blue fibs:
100% of a of v = 15,446 and
123.6% of a of v = 15,617 and
So far the high was made at 15,397 short of 100% ext of subwave a of wave v up.
WE can expect bulls to make one more push higher in the course of subwave c of wave v up. But bulls are walking on thin ice.
If you look at dark red fibs you will see that wave iii up stopped at 176.4% ext and wave v up so far tagged 223.6% ext. That is a classic topping combination.
Now lets switch to 15 min chart to see a micro structure of subwave c of wave v up.
NQ - Daily chart updated at 8-45 AM on 8-27-2021
Ideally that final segment of the rally has to subdivide into five micro waves of a smaller degree.
So far we have got waves i up, ii down, iii up and iv down.
At this point we got large enough pullback to be considered a corrective wave iv down. But the micro structure of that decline does not look clean. And yesterday I proposed a double Three structure which argued for one more push lower in a micro subwave c of -y- of iv down.
In conclusion:
To complete the double three corrective structure bears may make another push down to make a nominal new lower low under 15,263. However, Bulls may ignore that structure, leave that corrective pullback without perfect completion and start pushing higher from here in the final wave v up.
The main idea of this chart is simple: as long as bulls hold NQ over the support at 15,116 they have another shot to push NQ to a new all time high.
NQ - 30 min chart updated at 8-45 AM on 8-27-2021
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