NQ - both scenarios argue for a move down today
Last night bears managed to undercut the Friday low.
We discussed that scenario.
We have got an a-b-c up structure off the Friday’s low where subwave b down managed to make a lower low.
That can be counted as Expanded Flat corrective structure.
That means it could be just a bounce in wave iv up to be followed by another decline in wave down targeting one more lower low.
Price has hit the Red Target box and retested the low made by wave i down.
The fact that wave iv up entered the territory of wave i down is a good sign for bulls. That confirms that bullish underlying momentum is still strong and the whole move -a-b-c- down (red labels) off the last all time high should be followed by a large -a-b-c- up.
NQ - 15 min chart updated at 8-20 AM on 9-13-2021
There is a bullish scenario shown below where the red -a-b-c- move down bottomed last night and the rally that followed is subwave -a- up, to be followed by a corrective a-b-c down zig – zag in wave -b- down.
Please note that under both scenarios described above, that overnight rally should be followed by a move down.
Under the first bearish scenario, we should get an impulsive decline targeting Friday’s lows.
Under the Bullish scenario we should get a corrective overlapping zig-zag in wave -b- down making a higher low (or re-testing Friday’s low again) and potentially painting a bullish reversal Inverse Head and Shoulders formation!
NQ - 15 min chart updated at 8-20 AM on 9-13-2021
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