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Over the previous two months, we’ve been monitoring a corrective Elliott Wave Precept (EWP) transfer (a-b-c) decrease from the July 4 excessive earlier than seeing the subsequent rally to ideally round $16660. We have now adopted up on our base prognostication often, and three weeks in the past, see , we discovered
“if the index stays above the October 6 low, with a primary warning for the Bulls beneath the $14800-900 zone, it ought to ideally be on its option to $16660. Lastly, a break above $15615 will seal the deal for the Bulls. Thus, whereas the index didn’t backside exactly the place we might have favored it to, we’ve exact worth ranges beneath which we all know our evaluation is fallacious. Till then, we desire to look greater.”
Quick ahead, and just like the , see , the morphed from a single, easy zigzag (a-b-c) right into a double, advanced zigzag (inexperienced a-b, gray a-b-c) from the pink W-iii July x excessive. See Determine 1 beneath. This complication can all the time occur, however it’s unimaginable to know beforehand and why we set goal worth ranges beneath or above we all know our major expectation is fallacious.
Determine 1. NASDAQ100 day by day decision chart with technical indicators and detailed EWP rely.
Nevertheless, the index nonetheless bottomed on October 26 completely inside the ideally suited pink goal zone (76.40-100.00% Fibonacci-extensions of pink W-i, measured from the pink W-ii low) in addition to within the inexperienced and orange goal zones we had offered to our premium members later in October. Therefore, it pays to remain extra often knowledgeable than as soon as each different week. Furthermore, the NDX has since staged a relentless rally: a Zweig Breadth Thrust Occasion was registered final Friday, November 3.
See our X publish right here:
Does this imply it’s now all clear crusing? No, as a result of Elliott Waves markets by no means transfer in a straight line. To succeed in $16660+ the market will full 5 (inexperienced) waves up 1, 2, 3, 4, 5. The 2nd and 4th waves are corrective pullbacks.
Presently, we view the index as wrapping up its (inexperienced) 1st wave. See determine 2 beneath. Primarily based on the unfavorable divergence and the variety of pullbacks registered on the hourly timeframe for the reason that October 26 low, gray W-iii is topping out, adopted by gray W-iv and W-v. We, subsequently, count on the index to high out quickly, ideally round $15500+/-100, earlier than a multi-day correction (inexperienced W-2) right down to ideally $14600+/-100 kicks in.
Determine 2. NASDAQ 100 hourly decision chart with technical indicators and detailed EWP rely.
As soon as inexperienced W-2 is accomplished, inexperienced W-3 to ideally $16450+/-100 will ensue. Like final, and as all the time, our major expectations are fallacious on a drop beneath the October 26 low, with a 1st warning for the Bulls beneath $14400.
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