close icon

Nasdaq to Take a Rest Before the Final Push

We wrote about the Nasdaq Composite on March 8th. While the index was trading near 5830 its weekly chart suggested the bulls should be able to lift the price to around 6500. Last week, 6461 was reached, so it is time to take a closer look and see what is left of this uptrend. Not much, judging by the Elliott Wave analysis of the daily chart below.
nasdaq elliott wave analysis august 3
The chart allows us to see the wave structure of the rally from 4210 in February, 2016, marked as wave (V) on the weekly time-frame. In theory, the fifth wave could develop as either an ending diagonal or a regular five-wave impulse. Here, it look like a diagonal pattern is highly unlikely, so we think wave (V) is going to be a normal impulsive pattern, labeled I-II-III-IV-V, as shown above. Wave I travels to 4970, followed by a pullback in wave II down to 4574, where the start of wave III was given. As you can see, waves IV and V are still missing. Since wave III looks complete, we could now expect a three-wave decline in wave IV to drag the Nasdaq to the support area of the lower line of the trend channel, before the bulls return for a final push in wave V of (V).

If this count is correct, the Nasdaq Composite should decline to around 6100-6000 and then rise to a new all-time high again. 6500 is still on the table, but chances are the bulls are not going for it right away. They have to take a rest first.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

CAC 40 Reaches Highest Level Since 2007

The French CAC 40 benchmark index climbed to 5629 yesterday. The last time it traded above 5600 was in late-December 2007 and while the price is still far from its 6192 all-time high, the current rally is no less significant, especially if we consider that just three months ago the bears dragged the CAC 40…

Read More »

Fibonacci Support Sends Nifty 50 to New High

In our last article about the Indian Nifty 50 index, published on May 19th, 2017, we shared an opinion that the price “is probably going to reach the 10 000 mark from now on. Maybe even 10 500.” Eleven months later, the Nifty 50 is trading near 10 550 after reaching 11 171 in late-January,…

Read More »

DJIA Bulls Still Alive After Two Months of Slaughter

DJIA bulls have not been in a good shape during the last two months, to say the least. The index registered its all-time high of 26 617 on January 26th, 2018, but has been in tailspin ever since, falling to as low as 23 360 on February 9th. After a swift but short-lived recovery to 25…

Read More »

Nikkei Bears Only Getting Warmed Up

The last time we wrote about the Japanese Nikkei 225 index (NKY) was October 18th, 2017. While the price was hovering around 21 360, the weekly chart of the benchmark allowed us to recognize a worrisome Elliott Wave pattern, suggesting the bulls should be able “to reach 23 000 or maybe even 24 000“, but…

Read More »

Dollar Index Bulls to Stop the Bleeding

2018 did not start well for the U.S. dollar, which fell against most of its rivals such as the Euro and the Japanese yen. As a result, the dollar index (DXY) did not shine as well. It fell to as low as 88.25 by mid-February before recovering to 90.23 a week later. The question we…

Read More »

CAC 40 Poised to Recover After Selloff

The recent market selloff spared no-one. Investors were reminded what fear was after stocks plunged sharply all around the globe. From the Dow Jones Industrial Average to the German DAX 30 and even in China, major benchmark indices suffered their biggest declines in years. Needless to say, French stocks tumbled, as well. The French CAC 40…

Read More »

DJIA Worst Day Ever in Elliott Wave Context

The DJIA fell by 1175 points on Monday, marking the worst daily decline in its entire 122-year history. In percentage points, however, yesterday’s selloff was not as big as Black Monday‘s 508-point crash on October 19, 1987, but it was still big and fast enough to make some investors wonder if this is the end…

Read More »

More analyses