NASDAQ and NDX travel update: close to completing five waves up!?

It is starting to look more and more like its completing five waves up off its early-April lows. Note the negative technical (RSI5 and MACD) and money flow (OBV) divergences on the weekly chart. Black wave-4 was a classic running flat btw (b>a, c ends above a: see also daily NDX chart below).

(FYI: Red wave-i label is missing, but it’s a leading diagonal)

The wave count shown on the charts is one of several possible, (I am traveling in Europe/Russia and unable to edit much) but the bottom line is: “although marginal higher highs are possible (NDX7499 would be ideal as to complete an ideal Fib-based impulse with wave-iii at 1.618x i and wave-iv at 1.000x i) it’s not necessary and I am expecting a larger decline first before any significant more upside is possible.

(FYI: green wave-3 label is missing but is last Monday’s high)

Of note, and using the wave labeling shown here, which can be one degree lower (and can be different on the SPX): major-1 -starting at the February 2016 low- on the NDX took 2 months, major-2 took 2 1/2 months, major-3 took 19 months, major-4 took 2 months, and under the count shown here major-5 has now been underway for almost 4 months. It thus appears from a timing perspective major-5 fits well with the other major-waves; especially since major-3 was already extended in time and price, and then the subsequent 5th wave will be “normal”; i.e. it doesn’t need to extend in time and price and thus is close to completing.

Trade safe!

Soul, PhD

President and Founder Intelligent Investing, LLC

Expert and Accurate Stock Market Forecasting

Vice President NorthPost Partners, LP a private Equity Fund. No boom, No bust, just consistency!

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