Over the previous two months, we have now been monitoring a corrective Elliott Wave Precept (EWP) transfer (a-b-c) decrease from the July 4 excessive earlier than seeing the following rally to ideally round $16660. We’ve got adopted up on our base prognostication repeatedly, and three weeks in the past, see , we discovered
“if the index stays above the October 6 low, with a primary warning for the Bulls under the $14800-900 zone, it ought to ideally be on its method to $16660. Lastly, a break above $15615 will seal the deal for the Bulls. Thus, whereas the index didn’t backside exactly the place we’d have appreciated it to, we have now exact value ranges under which we all know our evaluation is improper. Till then, we want to look larger.”
Quick ahead, and much like the , see , the morphed from a single, easy zigzag (a-b-c) right into a double, complicated zigzag (inexperienced a-b, gray a-b-c) from the pink W-iii July x excessive. See Determine 1 under. This complication can all the time occur, however it’s not possible to know beforehand and why we set goal value ranges under or above we all know our main expectation is improper.
Determine 1. NASDAQ100 every day decision chart with technical indicators and detailed EWP rely.
Nonetheless, the index nonetheless bottomed on October 26 completely inside the superb pink goal zone (76.40-100.00% Fibonacci-extensions of pink W-i, measured from the pink W-ii low) in addition to within the inexperienced and orange goal zones we had introduced to our premium members later in October. Therefore, it pays to remain extra repeatedly knowledgeable than as soon as each different week. Furthermore, the NDX has since staged a relentless rally: a Zweig Breadth Thrust Occasion was registered final Friday, November 3.
See our X submit right here:
Does this imply it’s now all clear crusing? No, because of the Elliott Waves markets by no means transfer in a straight line. To succeed in $16660+ the market will full 5 (inexperienced) waves up 1, 2, 3, 4, 5. The twond and 4th waves are corrective pullbacks.
Presently, we view the index as wrapping up its (inexperienced) 1st wave. See determine 2 under. Primarily based on the destructive divergence and the variety of pullbacks registered on the hourly time-frame because the October 26 low, gray W-iii is topping out, adopted by gray W-iv and W-v. We, subsequently, anticipate the index to high out quickly, ideally round $15500+/-100, earlier than a multi-day correction (inexperienced W-2) right down to ideally $14600+/-100 kicks in.
Determine 2. NASDAQ 100 hourly decision chart with technical indicators and detailed EWP rely.
As soon as inexperienced W-2 is accomplished, inexperienced W-3 to ideally $16450+/-100 will ensue. Like final, and as all the time, our main expectations are improper on a drop under the October 26 low, with a 1st warning for the Bulls under $14400.
