NASDAQ: Reacted Strongly From Elliott Wave Blue Box Area

In this technical blog, we are going to take a look at the past performance of 1 hour Elliott Wave Charts of NASDAQ index, which we presented to members at elliottwave-forecast. In which, the rally from 22 March 2020 low unfolded as an impulse structure. Thus suggested that it’s a continuation pattern. And as per Elliott wave theory after a 3 waves pullback, it should do another extension higher in 5 waves impulse structure at least. Therefore, we advised members not to sell the instrument & trade the no enemy areas ( blue boxes) as per Elliott wave hedging remained the preferred path looking for 3 wave reaction higher at least. We will explain the structure & forecast below:

NASDAQ 1 Hour Elliott Wave Chart

NASDAQ 1 Hour Elliott Wave Chart from 5/14/2020 NY update. In which, the cycle from March 2020 low ended 5 waves impulse structure at $9345.50 high. Down from there, the index made a pullback. The internals of that pullback unfolded as Elliott wave double three structure where wave ((W)) ended at $8997.50 low. Wave ((X)) bounce ended in a lesser degree zigzag structure at $9204 high. Down from there, ((Y)) leg lower also unfolded as a zigzag structure & was expected to find buyers at $8853.05-$8637.15 blue box area. From where the buyers were expected to appear in the index looking for another 5 waves rally. Or to do a 3 wave reaction higher at least.

NASDAQ 1 Hour Elliott Wave Chart

Here’s 1 hour Elliott Wave Chart of NASDAQ from 5/19/2020 NY update, in which the index is showing reaction higher taking place from the blue box area. Allowed members to create a risk-free position shortly after taking the longs. It's important to note that with further market data, we re-adjusted the count by downgrading the degree of labeling in 1 Hour Chart.