In last week’s articleabout the NASDAQ 100, I concluded based on the Elliott Wave Principle (EWP) and technical analysis:
“The bulls are mere inches 21p away from a significant top, as the NDX swiftly dropped to the anticipated 12200 levels based on simple EWP-based wave-C = wave-A symmetry. If today’s low can hold going forward, the NDX can start moving back to its ultimate bull market target in the low 14000s.”
One week later and that low is still holding, and thus the bulls still have, at least, one more shot left at another rally to new all-time highs. See blue arrow in figure 1 below.
The technical indicators have turned back up with this week’s rally, and the index has also been able to claw itself back above its 10-day simple moving average. Resistance is now at the 20-day and 50-day SMA. Thus, the bulls have their work cut out to re-establish a new uptrend because a close below the 10-day SMA targets 12400-500 once again.
Figure 1. NDX100 daily candlestick chart with EWP count and technical indicators.
NASDAQ 100 Daily Chart.