Nasdaq 100 Heading for Major Support

by WaveTrack International| November 21, 2018 | 3 Comments

Nasdaq 100 Breaks October Low but Heading for Major Support

The Nasdaq 100 has traded deeply inside the early-November recovery advance. However, now the Nasdaq looks set to even break below the late-October low of 6580.50 (futures) – [see fig #1]. But rather than signalling an extended decline, this transforms the early-October decline from 7727.75 into an ending/expanding-diagonal pattern. According to the Elliott Wave principle labelled (i)-(ii)-(iii)-(iv)-(v). Particularly, wave (v) is now in decline but approaching measured downside targets towards 6457.70-6416.00+/-.

Nasdaq 100 – 240 mins. – Financial Forecasting by WaveTrack International

Note that each impulse wave of the diagonal, (i)-(iii)-(v) subdivides into a required zig zag or double zig zag pattern, i.e. a-b-c. This provides specific pattern-recognition for the diagonal and its probable completion.

Conclusion

The large-cap indices like the S&P 500 are unlikely to break below the equivalent late-October lows. So this extended trade lower for the Nasdaq 100 represents relative underperformance reflecting the current pessimistic sentiment for FAANG stocks and the like. Allowing for a contrarian opportunity to buy/remain long.

The larger picture adds this diagonal pattern into this year’s two preceding sequences. Consequently, showing the Nasdaq 100 completing an [a]-[b]-[c], 3-3-5 running flat pattern as minute wave 4. That in itself is very bullish for the next several months into H1-2019.

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