NASDAQ going down to 6400 in Wave E of the ABCDE pattern?
NASDAQ appears to be moving in an ABCDE corrective pattern. It has completed four legs and is currently going down in the E wave.
Wave E should be made up of an ABC sub-wave. Currently, wave 2 of the wave A is in progress (red wave) which can have another short movement up on Monday to 6950, from where it could go down in the third wave.
Wave E should be made up of an ABC sub-wave. Currently, wave 2 of the wave A is in progress (red wave) which can have another short movement up on Monday to 6950, from where it could go down in the third wave.
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Hello Everyone
NASDAQ has been trying hard to cross the 7000 resistance level for two weeks but has consistently failed. The bearish idea shown above is valid as long as 7000 is a resistance. NASDAQ could try again to break this resistance early next week and could go down in wave E if it fails.
However, if this level becomes a support then the bearish wave count would become invalid. Note that just crossing this level is not sufficient, NASDAQ must drop back to 7000, retest it and find support at this level.
I have shown an alternative bullish wave count below if this level becomes a support.
Bottom line: Keep an eye on the 7000 level to see if it remains a resistance or becomes a support.
NASDAQ has been trying hard to cross the 7000 resistance level for two weeks but has consistently failed. The bearish idea shown above is valid as long as 7000 is a resistance. NASDAQ could try again to break this resistance early next week and could go down in wave E if it fails.
However, if this level becomes a support then the bearish wave count would become invalid. Note that just crossing this level is not sufficient, NASDAQ must drop back to 7000, retest it and find support at this level.
I have shown an alternative bullish wave count below if this level becomes a support.
Bottom line: Keep an eye on the 7000 level to see if it remains a resistance or becomes a support.