Here is my chart combining channels, trend lines, and waves.
You can see that the NASDAQ has been fighting to stay inside the blue channel since mid-October, but has been trapped under the black channel. If it is going to hold, then this would be a good place. That would keep the blue channel bull rally intact.
However, this week's rejection off the top of the channel is not a great sign. There is still a good possibility that we still need to complete the wave C of the larger ABC correction before this is over. Right now, Wave C stands at a 0.618 fib extension of Wave A which is pretty small. If it goes lower, then a bounce and support at 0.786 seems logical, which is around the peak before the COVID crash. That could be a good long entry.
I would not rule out something closer to the 1.0 level before we are done. If that does come to be, then that takes us down to the red trend line created off the bottoms of the 2018 and 2020 corrections. That is the 9000 range (could overshoot down to 8700) and would be a great place for a big long entry. Anything lower than that, and, well, lets not think about.
You can see that the NASDAQ has been fighting to stay inside the blue channel since mid-October, but has been trapped under the black channel. If it is going to hold, then this would be a good place. That would keep the blue channel bull rally intact.
However, this week's rejection off the top of the channel is not a great sign. There is still a good possibility that we still need to complete the wave C of the larger ABC correction before this is over. Right now, Wave C stands at a 0.618 fib extension of Wave A which is pretty small. If it goes lower, then a bounce and support at 0.786 seems logical, which is around the peak before the COVID crash. That could be a good long entry.
I would not rule out something closer to the 1.0 level before we are done. If that does come to be, then that takes us down to the red trend line created off the bottoms of the 2018 and 2020 corrections. That is the 9000 range (could overshoot down to 8700) and would be a great place for a big long entry. Anything lower than that, and, well, lets not think about.
Comment:
Good news is that price was able to retreat back above the 20 day after a test this morning.
Comment:
Friday showing some strength. Bounced off of 20 day SMA and now testing channel resistance again.
