Not at all elegant or satisfying, but following the break of 13065 on Monday leaves me with this as the best possible count. We are completing a Primary C wave (Cycle A) with a motive pattern, meaning a diagonal 5 wave pattern with overlapping waves. The alternative would be a triangle C, but that would happen in an expanding flat, which this is not. The structure of this C wave is corrective in nature as shown by the arrows, so a diagonal C is the best I can come up with now. Since wave 1 of this structure is the longest, wave 5 will have to be the shortest, so maximum extent of this C wave is 1:1 of 3 (12200 something) but more likely now. 13040 is the 0.618 extension of 3 and that is where we are right now. Divergence on the RSI suggests that a major rebound is imminent, though it should be noted that breaking this divergence to the downside can lead to dramatic price action, so again CAUTION during corrective waves.
Comment:
Since 13045 low close, nasdaq has rebounded powerfully and has taken out an important resistence. More resistence overhead, so don't get too excited. The time for 2000 point trades will come, but this isn;t it yet. Don.t trade corrections like trends.
Trade active:
Strong resistence @ 14340
