Yesterday, on the chart in the post-script of our article, we had posted minute wave ((iv)) at the 7,756 level in the NASDAQ 100 Index after carefully watching the overnight futures prices and determining that a downward pointing diagonal was not forming. Higher highs for the NDX cash index did occur. The futures also made "five waves up" including a verified ending diagonal at the end of the day. The chart is below.
|NASDAQ 100 (NQ) Futures - 15 Minutes - Five Waves Up|
Further, we noted that often the end of the month is "window dressing time". On this index, the window dressing began in earnest after the cash close.
There are now a clear five non-overlapping waves upward, with much of the overnight session occupying a very long wave iv. This was followed by an overlapping five-wave diagonal fifth wave higher. And this ending diagonal is a verified diagonal. Prices exceeded the start of the diagonal lower in less time than the diagonal took to form. Further, the high of wave i has now been overlapped downward. Therefore, this can not be part of the fourth wave, it must be a larger degree second wave, or a full-on down move.
There are 111 candles on the chart - which is not too bad of a fit for The Eight Fold Path Method's recommended 120 - 160 candles.
The reason the bulls need a "stick save" is that the diagonal is verified. It may just end this wave sequence. This wave might only be the first of a larger wave for minute ((v)). But, if that is the case, then prices should not trade below that 7,756 low. As far as I know, where cash did make a higher high, the futures did not.
The large drop in the NQ came when Alphabet (GOOG) reported a revenue miss, and the stock dropped 5% in the after-hours. So, even if a stick-save does occur (sometimes these things reverse by morning) the whippy action means a good deal of caution in wave counting is needed.
Have an excellent start to your evening.