Elliott Wave View: Impulsive Rally in Nasdaq NQ_F Favors Upside

Short Term Elliott Wave view in Nasdaq suggests the rally from April 8, 2020 low is unfolding as a 5 waves impulse. Up from 4.8 low, wave (1) ended at 8326.25, and pullback in wave (2) ended at 8073.25. The Index then resumes higher in wave (3) towards 8710. The internal subdivision of wave (3) is in 5 waves of lesser degree, as below chart shows. Up from wave (2) at 8073.25, wave 1 ended at 8243.5 and wave 2 pullback ended at 8141.25. From there, wave 3 higher ended at 8488, wave 4 ended at 8415.25, and wave 5 of (3) ended at 8710.

Index then pullback in wave (4) which ended at 8481.18. Wave (5) is currently in progress as an impulse. Up from wave (4) at 8481.18, wave 1 of (5) ended at 8785.5 as a leading diagonal. Wave 2 pullback ended at 8605.25 and Index has resumed higher again. Near term, while dips stay above 8481.18, expect the Index to continue higher in a few more highs before ending wave (5). We don’t like selling the Index and favor more upside in the short term as far as pivot at 8481.18 stays intact.