Assessing the NASDAQ 100 for Signs of a Significant Market Peak Assessing the NASDAQ 100 for Signs of a Significant Market Peak

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By Ronald Tech

In a recent update, it was determined that the NASDAQ 100 was expected to experience a correction, based on the Elliott Wave Principle.

“An impulse consists of five waves; so far, there have been only three waves since the January 5th low. Hence, we must expect another grey W-v to ideally $17738-890 once the current minor correction since last week’s high has run its course while staying above critical price levels. Note that the grey W-iv typically reaches the 100% Fib-extension level but can also bottom at 123.60% (shallow) or 76.40% (deep).”

Subsequently, the index reached a low at the 76.40% level and then rallied, only to experience a sharp decline. It is crucial to note that this forecast is based on potentials rather than certainties, and specific price levels play a significant role in verifying the market’s trajectory.

Figure 1. NDX hourly chart with detailed EWP count and technical indicators

NDX-65min Chart

Today, the index broke below two of the four colored warning levels, indicating an increased caution for market participants. A further decline would strongly suggest that the recent rally has concluded.

However, the alternative scenario using the regular NASDAQ paints a slightly different picture, as displayed in Figure 2 below.

Figure 2. Daily NAS chart with detailed EWP count and technical indicators

NDX-Daily Chart

Given the recent price action, interpreting the market from an EWP perspective is complex. A pullback in the near term could be expected, with a break below certain levels signaling a potential downturn. Moreover, a break below a specific low may suggest a broader market shift.


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