NASDAQ could drop more than 150 points in the coming days based on the following 26 July NASDAQ Elliott wave analysis.
The ‘tech stocks’ index has been bullish this month, gaining more than 550 points. However, looking at the price chart with Elliott wave theory, it seems an important reversal pattern has completed and the index might fall in the last trading days of this month and the early days of next month. The move has already started with about 140 points drop today in just about 4 hours. Will this continue? What wave pattern has completed to suggest this would happen?. The chart below shows.
26 July NASDAQ Elliott wave analysis- will it drop?
The close to 570-points rally this month has completed an impulse wave as the chart below shows. According to Elliott wave theory, trends unfold in 5-waves and followed by a 3-wave correction in the opposite direction of the trend.
The chart above is a clear impulse wave with an ending diagonal 5th wave. Ending diagonals are often followed by fast moves against the prevailing trend. This has already been confirmed with today’s 140 points drop in about 4 hours. The index is expected to falter further to 7150 or even lower. From the current price, we would be expecting another 200-250 drops.
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