• 288 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 290 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 690 days Could Crypto Overtake Traditional Investment?
  • 695 days Americans Still Quitting Jobs At Record Pace
  • 697 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 700 days Is The Dollar Too Strong?
  • 700 days Big Tech Disappoints Investors on Earnings Calls
  • 701 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 703 days China Is Quietly Trying To Distance Itself From Russia
  • 703 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 707 days Crypto Investors Won Big In 2021
  • 707 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 708 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 710 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 711 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 714 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 715 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 715 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 717 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Trade In Counterfeit Goods Hits Half A Trillion Dollars

Trade In Counterfeit Goods Hits Half A Trillion Dollars

The counterfeit market has breached…

  1. Home
  2. Markets
  3. Other

A Beautiful Picture For the NASDAQ

For the next few days, through May 31st, 2005, we are still offering a special, discounted annual subscription rate of $179, a 39 percent discount off the regular rate of $295 per year.

Click on the Subscribe Today! button at www.technicalindicatorindex.com to take advantage of this great offer.

There is an incredible geometric 3 dimensional pattern evident in the $NDX by connecting closing tops and bottoms over the past seventeen months. If we count by trading days, if June 4th, 2005 is the next top, we get a perfect parallelogram (red lines), and a perfectly designed 3-D Triangle (Blue Lines). The thing looks like it is suspended in space. We have marked the number of trading days for the distance of lines measuring tops to tops, bottoms to bottoms, and bottoms to tops. Notice the interrelationships of the lines. Every line's distance in trading days is part of a function to calculate another line's distance using only the trading days identified within this pattern. Does this look random? The right side's relationship with the left, 83/138, approximates a phi .618, and the bottom's relationship with the top, 180/235, approximates the square root of phi, .786. June 4th should be one exciting day.

The chart above (courtesy www.stockcharts.com) shows the NASDAQ 100 index finishing up Minuette wave ii. We've seen a five-wave impulse decline from the first of the year to late April, followed by a corrective rally that is almost complete. Next - although its start could be a week away - is a sharp sell-off as wave iii unfolds.

Wave ii has taken on the shape of a Rising Parabolic Spike Arc. Here's what we know about such vertical patterns: When prices are going virtually straight up (its slope is substantially steeper than the normal 45 degree ascension), we know that the next major move will be straight down. The only uncertainty is how high will "up" be? Vertical ascensions do not normally last very long. There will be no soft landing for this pattern. The Beautiful Picture Triangle/Parallelogram suggests prices could rise to just below 1,600.

The point where wave "c" is 1.618 times wave "a" was at 1,544.50. A .618 retrace of the decline from December 15th 2004 to April 29th, 2005 was at 1,543.50, essentially the exact same place, evidence that markets seek order. We reached a high of 1,551.12 Thursday, a hair above these targets. The 50 day moving average is below the NDX's 200 day MA. This cross-under has increased to 1.6 percent during this parabolic rally, very close to what we would consider a decisive cross-under. This signals lower prices ahead. The wave ii rally was able to get these two simple moving averages to curl up, but failed to pull the 50 day above the 200 day.

At the top of this page we see that the current rally is drawn toward the underbelly of the longterm rising trend-channel from March 2003, and a second trend-line from October 2002. This offers significant resistance. In fact, prices were stopped cold this week by the March 2003/August 2004 trendline. The RSI is overbought and the MACD Histograms are shrinking, indicating upside momentum is waning. This weekly bar chart shows that volume has been declining during the latest rally.

Our subscribers gain a unique advantage with this information, along with a host of other technical analysis research, charts, and data for a modest annual fee of $295 per year. We offer less expensive six month subscriptions, and also free 30 day trial subscriptions for folks just discovering us.

We publish technical analysis newsletters of the major U.S. Equity, Bond, Commodity, Precious Metal, and Currency markets, using multiple tools simultaneously, including Elliott Wave Theory, Supply and Demand, Momentum Measures, Dow Theory, Chart Patterns, Cycles, Sentiment Measures, Fibonacci Ratio Measures for Price and Time turn-date targets, and Analogs of Current Price Behavior with the Past to name a few.

For the next few days, through May 31st, 2005, we are still offering a special, discounted annual subscription rate of $179, a 39 percent discount off the regular rate of $295 per year.

Click on the Subscribe Today! button at www.technicalindicatorindex.com to take advantage of this great offer.

"The lot is cast into the lap,
but its every decision if from the Lord."

Proverbs 16:33

Here's the color coded, legend we use for our Elliott Wave count symbols, starting from the largest degree waves to the smallest:
  Impulse Waves Corrections
Grand Supercycle {1} to {V} {A} to {C}
Supercycle (I) to (V) (A) to (C)
Cycle I to V A to C
Primary (1) to (5) (A) to (C)
Intermediate 1 to 5 A to C
Minor 1 to 5 a to c
Minuette i to v a to c
Micro 1 to 5 a to c
Subnmicro {1} to {5} {a} to {c}
Nano {1} to {5} {a} to {c}

 

Back to homepage

Leave a comment

Leave a comment