NASDAQ dropped more than 150 points last Friday. Will the decline continue? The following 30 July NASDAQ Elliott wave analysis gives insights as explained below.
Since its last week top at 7513, NASDAQ has dropped more than 250 points. A fast 140 points drop happened last week after an impulse wave completed. Wave patterns often warn of important price reversals and sometimes, also reveals the strength of a trend. In the last update, we discussed the technical reasons for this drop and also suggested that price would lose another 200-250 points soon. The chart below was used in the last update.
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.
30 July NASDAQ Elliott wave analysis: what next?
Since the last update, price has dropped about 170 points.Has wave A completed yet? Probably not. Wave A does not have a visible 5-swings yet It would probably would take one last leg below 7200. The A_B_C bearish correction should continue to 7140 before we look at what should happen next. Stay tuned for the next update.
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