Unicorns Companies Loses Momentum is it Time for Stock Markets?

Technology companies known as unicorns seem to be missing momentum. The current season of publication of income of the technologic sector appears to be moving away from the interest of the investors.

According to a ranking published by Fortune magazine, among the ten unicorn companies, the list is headed by Uber (NYSE: UBER) and bottomed is by Pinterest (NYSE: PINS).

UBER disclosed its third-quarter revenue on Monday, November 4. The company reported a net loss of $ 1.16 billion, higher than the losses of $ 986 million reported in the same period of 2018. UBER this week accumulates losses of 14.15%, reaching $ 25.58 per share.

Nasdaq 100 index during this year advances 33.23% (YTD). However, in a record high context, the inevitable question is, how much longer will this euphoric sentiment led by the technology sector continue?

Technical overview

 The Nasdaq 100 index big picture illustrates a rally that continues reaching new all-time highs. According to the Elliott wave theory, the current structure suggests that the technologic index runs in an incomplete ending diagonal pattern.

The current formation moves inside the fifth wave of Cycle degree, labeled in blue. This upward path started on the late of December 2018, when Nasdaq found buyers at 5,871 pts.

Looking at the 4-hour chart, we see that Nasdaq moves inside of wave (C) of intermediate degree labeled in green. The wave (C) began on October 02, 2019, when Nasdaq found buyers at 7,646.50 pts. Remember that the Elliott wave theory says that this segment must have five waves.

In the same timeframe, the technologic index shows the price unveils to the price action running in the wave 5 of Minor degree labeled in blue.

As a summary, the Nasdaq 100 index moves mostly bullish in an ending path. This sequence shows the price running in the fifth wave of the Minor degree, inside the fifth wave of Intermediate degree, of the Primary degree, of the Cycle degree.