NASDAQ: Watch out for a correction

NASDAQ is in the final stages of the third Elliott wave which started at 6460 (dark blue). It appears to have already completed four minor waves (green) and is currently in its fifth leg.

Further, if you drill down, you would notice that the fifth green wave has also completed four minute waves (pink) and the fifth pink wave has completed three sub-minute waves (turquoise). I have also shown them below for clarity.

A significant correction is expected to start after the completion of the third dark blue wave (around 7350) which could follow an ABC pattern as shown in the red wave and take NASDAQ down to 6900 level. The fifth dark blue wave will start after this correction which could take NASDAQ up to around 7500.

Note: It is just for my own future reference and is not a trading advice.

Comment:

4 hour chart: Green wave

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2 hour chart: The fifth leg of the pink wave

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NASDAQ turned down exactly from where expected. Watch out for Wave B to the upside now.

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Wave B extended more than I had expected, so wave C could go down to 7100 level instead of 6900 if Wave C = 1.62 times Wave A.

Comment:

The extension of Wave B has been nullified by the length of Wave 3 of C. Therefore, Wave C may achieve the original target.
Load new bars to see how perfectly NASDAQ has followed the Elliott waves!

Comment:

Five waves completed.

Comment:

NASDAQ could now go back up in the fifth wave up to 7500 as mentioned in the main chart above.