In this week's update, I analyzed the market structure and potential future movements. I discussed the Nasdaq's position within a third wave of primary degree, explaining that while the S&P and Dow were in primary third waves, the Nasdaq 100 was at a lesser degree due to its different historical development starting in 1985.
I examined the recent rally in AI-related stocks, including NVIDIA (NVDA), Broadcom (AVGO), AMD (AMD), Marvell (MRVL), Micron (MU), and others, noting that the market had moved above key resistance levels and was positioned for continued upside.
I presented two possible scenarios for the market's near-term direction: either the current rally continues as wave 3 with targets around 30,637-31,123, or the market could experience a brief correction (A-B-C wave 2) before resuming the upward trend.
I emphasized that while AI spending by hyperscalers presents significant upside potential, traders should remain cautious about geopolitical risks, including concerns about potential conflict between the UK and Russia that could impact global markets.
Weekly expected ranges:
SPY 771.56 751.82.
QQQ 733.64. 709.26
IWM 289.08. 279.12
DIA. 522.84. 508.92
Video Length: 00:44:26
Comments
Log in or sign up to join the conversation.