NASDAQ 100 Wave Forecast - Intraday

Since I trade the S&P500, I also regularly review the NASDAQ and the Russell 2000 as they all move relatively similarly and when one finds a major reversal, the others do also. In this post, I will present two possible ways in which the NASDAQ could move during the next few days going into 2018. Below I will showcase each chart, pointing out its strengths and weaknesses.

Triangle

The most bullish view I can see, is that we are currently forming a triangle, which would, after completion, see a swift thrust to the upside before finding a longer term high in January. All waves so far from the top @6546 have been in "three's", which is usually a good indication of a triangle. Also, going into the December holidays, markets tend to move more sideways as volume decreases. This adds significance to this count, as triangles are very much sideways patterns.

Zig-Zag

Perhaps my favorite view is that we will further decline from the high to form a zig-zag or double zig-zag pattern. This count is also clear, however we would have to see a sharp decline today or next week to validate this count. There are clear invalidation levels that need to hold in order for this pattern stay valid.

#SP500 #NASDAQ #IWM #WianStipp #ElliottWave