Nasdaq (NDX) is at an interesting spot on the chart.
From an Elliott wave perspective, a bearish and bullish count can be identified. The near term movements in NDX may eliminate one of the counts leaving us with a preferred Elliott wave count and forecast.
The green count and arrow reflects a bullish wave structure to implies a retest of new highs. Some wave relationships appear in 14,000 area with higher levels possible.
The red count and arrow reflects a bearish wave structure. For the bearish wave structure to gain a foothold, NDX will need to resume its sell-off fairly soon. Essentially, the downward sloping trend channel needs to be respected moving forward for the bearish count to be preferred. Under the bearish count, new lows below 12,208 will likely drag NDX down to 10,500ish and possibly lower levels.
If NDX continues sideways to higher, then the pressure of a resumed sell-off become relieved and a retest of the highs become higher probability.
From an Elliott wave perspective, a bearish and bullish count can be identified. The near term movements in NDX may eliminate one of the counts leaving us with a preferred Elliott wave count and forecast.
The green count and arrow reflects a bullish wave structure to implies a retest of new highs. Some wave relationships appear in 14,000 area with higher levels possible.
The red count and arrow reflects a bearish wave structure. For the bearish wave structure to gain a foothold, NDX will need to resume its sell-off fairly soon. Essentially, the downward sloping trend channel needs to be respected moving forward for the bearish count to be preferred. Under the bearish count, new lows below 12,208 will likely drag NDX down to 10,500ish and possibly lower levels.
If NDX continues sideways to higher, then the pressure of a resumed sell-off become relieved and a retest of the highs become higher probability.
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www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress