Nasdaq 100: Should You Buy This Dip? | Investing.com

For these new to our Elliott Wave-based analyses and as a reminder to our common readers, we now have 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. Nevertheless, whereas the draw back threat is thus at present growing and acceptable actions needs to be taken, e.g., increase stops and take partial earnings, till we see not less than a break under NDX21200, we are able to nonetheless enable for greater costs … the pink 138.20% extension at NDX21868… A break under that degree, particularly the (orang) third warning degree 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 under NDX21200 however continued to NDX22133 by December 16, thus barely exceeding the $21868 degree. Nevertheless, FED-Wednesday, December 18th, erased the prior ten days of positive factors. 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 right now. See Determine 1 under:

Determine 1. NDX every 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 anticipate it to succeed in NDX20300-600 for the inexperienced W-c of the pink W-iv, as proven. Observe that these ranges align with what we already anticipated in late November (see ), exhibiting the forecasting energy one can get pleasure from utilizing the EW.

Thus, contingent on holding not less than under yesterday’s excessive at NDX21837, and particularly under the current all-time excessive at NDX22133, we should always anticipate the index to backside across the NDX20300-600 degree for the pink W-iv earlier than it could stage the following extra important, pink W-v rally, to ideally NDX22825-23400.