The NASDAQ100 (NDX) has been following an ending diagonal (ED) pattern for over a month, with the index reaching the minimal upside target of 123.60% at NDX21509 for the third wave extension. Despite the increasing downside risk, the index continued to climb to NDX22133 by December 16, exceeding the $21868 level. However, a drop on FED-Wednesday, December 18th erased the prior gains, prompting the warning levels to be raised for Premium Members to NDX21600.
The index bottomed on December 20 at NDX20913 and rallied to the ideal green W-b target zone before being rejected. It is now anticipated to be in the red W-iv phase, with a projected range of NDX20300-600 for the green W-c of the red W-iv. These levels align with previous forecasts from late November, showcasing the accuracy of Elliott Wave analysis in predicting market movements.
To confirm the red W-iv phase, the index needs to hold below yesterday’s high at NDX21837 and especially below the recent all-time high at NDX22133. If this holds, the index is expected to bottom around the NDX20300-600 level before a subsequent rally in the red W-v phase to ideally NDX22825-23400. This projection highlights the potential for further gains based on the Elliott Wave analysis.
Overall, the NASDAQ100 has been displaying a clear pattern following the Elliott Wave theory, which has allowed for accurate forecasts regarding the index’s movements. As the index continues to fluctuate within the ending diagonal pattern, traders and investors can use these projections to make informed decisions and adjust their strategies accordingly. By closely monitoring key levels and staying updated on technical indicators, market participants can capitalize on potential opportunities within the NDX.
