NDX: hold tight. More downside than upside is expected
NDX reached the PRZ in the bearish Gartley pattern in the last post.
Did NDX completed the pattern? It seems so, but I have two hold-backs: (1) it reached the PRZ too early, and the time between BD is much shorter than XB; and (2) it cleared two of PRZ targets, but there is still one more target to be cleared. Maybe there is one more push towards the last target before completion although it is not a requirement for the pattern. I would be much more comfortable to call the completion either if NDX will reach the target first and fall back, or if NDX will fall out of the consolidation area formed in the last six trading days.
What would be the target for the fall after the completion?
From Elliott Wave perspective, April low to May high formed a nice three-wave structure which is a corrective pattern. We can assume two simple targets from this:
(1) Add 1 x XA length to D = 6144.77: interestingly, this level is close to February low of 6164.43.
(2) Add 1.618 x XA length to D = 5611.13: this level is quite near to May 2017 support (5568.47) and July 2017 support (5579.64).
If NDX will reach to the new high, this view will be negated. Otherwise, there will be quite some downside to come.
More charts can be found at www.white6intelligence.com
Did NDX completed the pattern? It seems so, but I have two hold-backs: (1) it reached the PRZ too early, and the time between BD is much shorter than XB; and (2) it cleared two of PRZ targets, but there is still one more target to be cleared. Maybe there is one more push towards the last target before completion although it is not a requirement for the pattern. I would be much more comfortable to call the completion either if NDX will reach the target first and fall back, or if NDX will fall out of the consolidation area formed in the last six trading days.
What would be the target for the fall after the completion?
From Elliott Wave perspective, April low to May high formed a nice three-wave structure which is a corrective pattern. We can assume two simple targets from this:
(1) Add 1 x XA length to D = 6144.77: interestingly, this level is close to February low of 6164.43.
(2) Add 1.618 x XA length to D = 5611.13: this level is quite near to May 2017 support (5568.47) and July 2017 support (5579.64).
If NDX will reach to the new high, this view will be negated. Otherwise, there will be quite some downside to come.
More charts can be found at www.white6intelligence.com
Comment:
If we use 1.27 BC projection instead of 1.41 BC projection, NDX already cleared all three targets at PRZ and reversed. Along with PRZ, the high at D, 7008.26, would be critical to watch.
