NDQ Chart Analysis: Assessing the Third and Fourth Waves!
We believe the Nasdaq 100 (NDQ) is approaching the end of its third wave in the larger cycle, as seen in the daily chart . However, this third wave has yet to fully conclude. Zooming into the short-term movements, we identify that the NDQ is currently in a corrective Wave 4 of Wave 3.
Current Structure of Wave 4 within Wave 3
In the daily chart, we observe a structure similar to the SPX, indicating an ongoing correction within Wave 4. This correction displays a typical three-part form, with what appears to be a well-defined B-wave at its current stage. B-waves are often unpredictable and can extend significantly before concluding. Given this, we anticipate a potential short-term C-wave downwards, which would complete Wave 4 and set the stage for the final upward push in Wave 5.
Technical Setup and Projection
The chart also highlights critical Fibonacci retracement levels, with the 0.382 and 0.5 levels at approximately 16,810 and 15,640, respectively. These levels could serve as potential support zones if the market dips into a C-wave as expected. Once this corrective movement concludes, we anticipate a strong rally into Wave 5, marking the continuation of the long-term uptrend.
Conclusion
In summary, our analysis suggests that the NDQ is nearing the end of Wave 3, with a final corrective dip likely in Wave 4 before the beginning of the fifth and final wave. The anticipated C-wave within this correction could create an entry opportunity before the uptrend resumes, driving the NDQ into new highs in Wave 5.