Are the bears finally waking from their long slumber as the Nasdaq 100 (NDX) continues to grace headlines with its intriguing dance? Utilizing the Elliott Wave Principle (EWP) as their trusted crystal ball, analysts have been peering into the future of this prominent index. In a recent evaluation, they made a profound proclamation that captured the attention of many industry aficionados.
“We must apply a Bullish EWP count until proven otherwise, and as long as the index can stay above $19,100, the third warning level, we can foresee it wrapping up the grey W-iii, followed by a grey W-iv, v; red W-iv and -v. … The waves’ target zones are at this stage but subject to change: $20,100+/-50, $19,600+/-100, $21,000+/-500, $19,200+/-200, and $25,000, respectively.”
Their bullish foresight was not in vain as the NDX obediently traced the outlined path. June 20th marked the zenith at $19,979 before a slight descent to $19,472 on June 24. Currently, the index elegantly hovers at $20,378, a sight to behold indeed.
Resilient as ever, the bears attempted to challenge the NDX, nudging it below the first warning level set at $19,620. But lo and behold, the bulls swiftly reclaimed dominance, propelling the index close to the $20,500 mark, signaling a changing of the guard in the financial jungle.
Revisiting their EWP, analysts anticipate the NDX to gracefully waltz through the green W-3, 4, and 5 sequence, ushering in the red W-v of the black W-5. A Fibonacci spectacle unfolds, with expectations of a peak around the 161.8% Fibonacci extension followed by troughs and another rise, painting a vivid picture of potential future price movements.
Warning levels continue their ascent, waving caution flags for the bulls. A break below the red 4th warning level at $19,470 will not only shift the balance from bullish to bearish but also serve as a signal to proceed with prudence amidst the exuberance.
The narrative is rich with past tales – a mention of divergence akin to the February-March saga and the absence of such discord during the mid-May to mid-June rally. While divergence whispers uncertainty, historical patterns offer solace in guiding market enthusiasts towards informed decisions.
As the NDX embarks on its journey, observers wait with bated breath, anticipating each twist and turn in this financial fable. Will the bears awaken from their hibernation, or shall the bulls continue their triumphant parade? Only time will divulge the final chapter of this captivating saga.
