For these new to our Elliott Wave-based analyses and as a reminder to our common readers, we’ve got been monitoring an ending diagonal (ED) sample for the for over a month. In our earlier , we discovered that:
“the index has superior to the minimal upside goal [123.60% @ NDX21509] for the third wave extension inside an ending diagonal sample. Nonetheless, whereas the draw back threat is thus at the moment rising and acceptable actions needs to be taken, e.g., elevate stops and take partial income, till we see not less than a break beneath NDX21200, we will nonetheless enable for larger costs … the pink 138.20% extension at NDX21868… A break beneath that stage, particularly the (orang) third warning stage at NDX20600, will inform us that the pink W-iv to ideally NDX20000-20300 is underway.”
Quick-forward: After our replace, the index didn’t break beneath NDX21200 however continued to NDX22133 by December 16, thus barely exceeding the $21868 stage. Nonetheless, FED-Wednesday, December 18th, erased the prior ten days of good points. Following the continued rally, we had already raised the warning ranges for our Premium Members to NDX21600, and thus, no hurt was completed.
The index bottomed on December 20 at NDX20913 and has rallied to the perfect inexperienced W-b goal zone, from which it was rejected at present. See Determine 1 beneath:
Determine 1. NDX day by day chart with detailed Elliott Wave rely and technical indicators
Thus, the anticipated pink W-iii high got here and went, and the index ought to now be within the pink W-iv. Given it topped exactly within the supreme bounce (inexperienced W-b) goal zone, we count on it to succeed in NDX20300-600 for the inexperienced W-c of the pink W-iv, as proven. Notice that these ranges align with what we already anticipated in late November (see ), exhibiting the forecasting energy one can take pleasure in utilizing the EW.
Thus, contingent on holding not less than beneath yesterday’s excessive at NDX21837, and particularly beneath the current all-time excessive at NDX22133, we must always count on the index to backside across the NDX20300-600 stage for the pink W-iv earlier than it could stage the subsequent extra vital, pink W-v rally, to ideally NDX22825-23400.
