Nasdaq Poised To Extend Rally
|The Nasdaq Elliott wave structure showed us a 3-wave drop. Selling pressure became increasingly weak along the correction, which resulted into divergence. The index has been trapped in a sideways correction. We remain with our outlook that price action most likely resolves to the upside. We expect to see something similar to our black path in the very first chart below. Alternatively, minute wave iv(circle) may morph into a triangle, which extends for another week or so sideways (dotted red scenario).
Another interesting observation is that all major US indices are showing different wave patterns as we publish this. That’s a sign or sprout of divergence. It fits our topping process in risky assets worldwide case. Equity markets may be getting ready to show non-confirming highs.
All in all, prices are likely to resolve to the upside sooner or later.
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