We did make new lows today, but we also got the bounce that I was expecting. Looks like we are in minuette wave (ii) now.
We chopped lower early this morning. Looks like that was the final stages of wave v. So today's bottom is marked as the end of minuette wave (i). I am expecting a 50% retracement for the up coming wave (ii). The wave structure also looks choppy, so this implies a correction.
For now, this should put us to some where around 1075. There is also resistance at 1080. In terms of wave counts, those are our 2 targets. Watch the internals on any bounce.
Looking at the daily chart, we may end up backtesting the trendline that we broke yesterday.
I don't see this line being broken without a fight, so we could easily get back up to it in the next few days. Somewhere around 1070-1071 is the target for that.
Also, we touched the very important zone between 1040-1044 today. As we know, this level is very important.
If we do break below this area, we could get some quick selling taking place. It could easily take us to 1020.
The only bullish thing I see is that the Nasdaq 100 has not confirmed the new lows. It has not even broken its May 6th crash lows.
It seems to be in a contracting triangle. If it breaks to the upside, we could have a very powerful move up. So keep an eye out for that.
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