NQ - where this move is heading?
On Tuesday we discussed that NQ stretched to a strong confluence of several targets:
– it tagged 100% extension of subwave -A- of wave ( B ) up; and
– it tagged 76.4% ext of combined length of micro waves -i- and -iii- prejected from the bottom of -iv- ( the red fibs in Itallics font);
Additional bearish argumant was that NQ tested the Red Supply Zone created by intraday reversal on March 5, 2020.
That day NQ opened at 8,728, then rallied to 8,856 but turned down during taht day and closed under the open at 8,709
On Wednesday morning NQ dropped 2% confirming that it topped on Tuesday.
Let’s discuss where we can locate the first target for that move down.
The real target for this move down is located in the Green Zone I placed in between 8,200 and 7,950.
This zone is formed by:
– the low made by teh previous corrective wave -iv- down that bottomed at 7,953 on April 7; and
– 33.3% retracement of teh whole -A-B-C move up off the March low.
NQ - 9,000 tick bar chart updated at 9-40 AM on 4-15-2020
The first target for QQQ will be to test that upper unfilled gap up ( the cyan box located in between 205.73 and 203.40 ).
The upper band of that box may stop the first bearish attack.
QQQ - 45 min chart updated at 9-40 AM on 4-15-2020
If NQ/QQQ topped on Tuesday in macro corrective wave ( B ) up we only see the start of a large move down. To confirm completion of the pullback NQ needs to break under 7,950 and QQQ needs to break under 195.
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