NASDAQ 100: Anticipated Correction Is Here

In early September I offered an Elliott Wave Precept-based on the . Even a month earlier than that, I used to be on the lookout for the index to ideally attain $16K. Three weeks in the past, it was at $15.6K and topped at $15.7K three days after I wrote my final replace. It had, thus, reached inside my perfect (inexperienced) minor wave-3 Fibonacci-based goal zone ($15611-16064). See Determine 1 under.

Earlier this month I had concluded:

• …goal zone is reached, and a few warning is suggested for shorter-term merchants as a result of after wave three comes wave-4 and wave-5.
• The negatively diverging technical indicators (pink dotted arrows) recommend this 5-7% pullback as properly.
• I anticipate the index to prime out within the goal zone quickly, put in a multi-week correction again right down to the best wave-4 goal zone $14430-14880 earlier than rallying for wave-5 to ideally $16340-16760.
• That final rally then completes an much more important 3^rd wave (black, main wave-3), and a multi-month main 4^th wave ought to then rattle the markets, and a revisit of $14750+/-250 ought to then be within the playing cards.

Determine 1: NDX100 every day candlestick chart with EWP depend and technical indicators.

Quick ahead, and the NDX certainly topped out within the perfect goal zone and has already reached the higher finish of the (inexperienced) minor wave-4 goal zone. Thus, many of the harm has more than likely already been finished. A really perfect wave-4 = wave-2 relationship targets NDX 14,615 (inexperienced dotted down arrow), completely inside the proper 4^th wave goal zone. Nevertheless, the entire technical indicators are pointing down and/or are on a promote. Thus, for now, draw back, even after a multi-day bounce, should be most well-liked.

Regardless, the EWP mixed with goal technical evaluation was a strong software to assist anticipate the following more than likely transfer. At at this time’s low, the index was down 5.7% from its current all-time excessive, and my anticipated 5-7% correction got here to fruition as properly.

Now that the 4^th wave goal zone is reached, it might be time to hit the purchase button as a low threat/excessive reward lengthy setup is now presenting itself. I recommend readers do the identical, and use these goal zones correctly. Moreover, the market doesn’t transfer in mysterious methods however adheres properly to time-tested, confirmed, common and mathematically worth patterns. As soon as you recognize and have unravelled these, buying and selling and investing turn out to be far more manageable.