Short-Term Nasdaq Elliott Wave Analysis
The Nasdaq 100 had a sharp reversal this week. We anticipated that kind of action and discussed it here during the past couple of updates. Is this bounce a trend reversal or is there another whipsaw to the downside? This is probably the reversal. The major US indices most likely show a broad-based impulsive move from this week’s lows. Its character does not fit any longer into an overlapping structure.
The reaction has taken the index right between the 38.2% and 50% Fibonacci level. Moreover, the move has been strong during a relatively short time span. The short time span in combination with the impulsive character makes some form of follow-through to the upside likely. The 7,400-7,500 area is now an important resistance and potential target. Last but not least, the 6,800-6,850 area is likely to act as short-term support.
All in all, the countertrend rally is likely to last for another few weeks.
The analysis above is a historical abstract of our Nasdaq 100 Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.