Here’s one possible Elliott Wave count for the Nasdaq, courtesy of Corey Rosenbloom at Afraid to Trade.
Updated Elliott Wave Count on NASDAQ
With many Elliott wave practitioners puzzled at the current wave count, here is a possible mainstream interpretation of the latest Elliott Wave Count on the NASDAQ, which has had the most impressive run-up off the March 2009 lows.
(click for larger image)
As a caveat, keep in mind this is only one interpretation.
This count assumes that we are perhaps completing a 4th Wave retracement (specifically an ‘expanded flat’) that is fulfilling the corrective wave nature. This is a simple wave count, without involving “X” waves and other complex concepts in Elliott lingo.
What’s surprising is the strength of the rally off the March lows, prompting some to call this a strong impulse wave. Whatever the case, it looks like the gas is running out of the current swing, as a dominant ‘wedge’ pattern is forming across all equity indexes. You can almost ‘feel’ the price running too far, too fast.
There’s no guarantee price will fall here, and any bear who has tried to call a top so far has been embarrassed, so keep in mind that markets can run higher than people think they can (or go lower than they think they can) so don’t try to outsmart the market – take what it gives you and do the best you can with the data you have at the time.
Corey Rosenbloom
Afraid to Trade.com
