Science Investing Team
Science Investing
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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The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. Reproduction without ESI Analytics’ prior consent is strictly forbidden.
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