With today’s ugly price action so far, the larger correction we’ve alluded to last week, see here, and even already a month ago: see here, is now taking hold. Note that neither the NYA nor the SPX have gone anywhere over that time frame: forewarned is forearmed and many of our members -including our trading company North Post Partners– have scaled out of longs, reduced risk and minimized losing positions since. In addition, our proprietary buy/sell indicator, the A.I., has remained on a sell since early-March on the DOW, keeping us a being seller: see our recent tweet here.
We can now also add the NDX to the list of indices that has reached several larger wave Fib-extensions. The first is the (red) 1.236x Fib-extension of intermediate i, measured from ii. It’s a typical 3rd of a 3rd wave Fib-extension (in this case that would be minor 3 of intermediate iii).
In addition, we see that (green) minor 3 reached the (green) 1.618x Fib-extension of minor 1. That’s a typical 3rd wave Fib-extension. Thus there are two wave degrees that coincide with their typical Fib-extensions and price has reached those. This adds weight to the evidence of a minor 3 top. Cont’d below.
We now expect, using standard retrace levels for 4th waves, minor 4 to drop to around $5200 before minor 5 targets the (green) minor 2.00x Fib-extension, which coincides with the (red) 1.618x intermediate Fib-extension, and assumes a typical 5=1 relationship. Since the NDX has sofar behave standard and typical, anticipating a standard and typical retrace is what we should start with.