While we have been monitoring the NASDAQ 100 (NDX) to reach approximately 26680 in an impulse (five-wave) move upward from the early April lows for a more significant top for some time, in our previous update from October 3, see here, we found that, according to the Elliott Wave (EW) Principle, the index would first experience a (4th wave pullback):
“We can allow one smaller (orange) Wave-5 to reach as high as ~25300, but it is no longer necessary, and that would be like picking up pennies in front of a steam train … as the green W-4 is inevitable … since in bull markets the downside disappoints and the upside surprises … a drop to … 23270-23830 is more likely. From there, we can expect one last fifth wave, the green W-5, to target a point close to the ideal black 161.80% Fibonacci extension, approximately 26680, which is also the green 376.4% extension—a typical extended fifth-wave target—at 26565.
Nasdaq 100 Wave Structure Suggests 2022-Like Correction After 26,700 Peak
