• 746 days Will The ECB Continue To Hike Rates?
  • 747 days Forbes: Aramco Remains Largest Company In The Middle East
  • 748 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,148 days Could Crypto Overtake Traditional Investment?
  • 1,153 days Americans Still Quitting Jobs At Record Pace
  • 1,155 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,158 days Is The Dollar Too Strong?
  • 1,158 days Big Tech Disappoints Investors on Earnings Calls
  • 1,159 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,161 days China Is Quietly Trying To Distance Itself From Russia
  • 1,161 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,165 days Crypto Investors Won Big In 2021
  • 1,165 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,166 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,168 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,169 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,172 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,173 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,173 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,175 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Trading On The Mark

Trading On The Mark

Trading On The Mark

Our work is grounded in several technical methods. We make use of Elliott Wave, Gann techniques, Fibonacci relationships in price and time, cycles, and other…

Contact Author

  1. Home
  2. Markets
  3. Other

Nasdaq 100 Completing a Pattern

In May, we cautioned readers to be prepared for a downward turn in equity indices - a forecast that was in part supported by the development of wedge-like formations. However, U.S. indices have since broken upward out of those formations. We still believe upside potential is limited and a sizeable correction is due this season. Yet, we cannot count the top as being in. The Nasdaq 100 Index currently presents the clearest Elliott wave structure and it suggests that a small decline may be due in mid-June to be followed by an attempt to make yet another new high in late June or early July.

As shown on the monthly chart below, price has reached the target area we have been watching since early March. Not far above that area, the 3,862 price level provides additional resistance as the Fibonacci 76.4% retrace of the index's all-time high. When the rally finally ends, NDX should at the minimum see a correction of wave (v), and it may see a larger correction of the entire move up from 2009.

NASDAQ100 Monthly Chart

The weekly chart shows how May's strong upward price move fits well with the idea of an upward wave 'iii' -- a wave that would be expected to show strength. If price finds resistance near the mid-line of the channel on the weekly chart (approximately 3,817 this week), then a relatively small wave 'iv' could take it back down to test the lower channel boundary before another bounce. A more detailed count on the daily time frame supports this scenario, and it can be found at our website.

NASDAQ100 Weekly Chart

 

Back to homepage

Leave a comment

Leave a comment