$COMPQ $NDX Elliott Wave 10:58AM PT Update — Deep Dip was bought
Note: This is an AI Generated article using Chat GPT
### NASDAQ $NDX $COMPQ Elliott Wave Update — August 6, 2024, 10:54 AM PT
The NASDAQ Composite (COMPQ) and NASDAQ-100 (NDX) indices have shown remarkable resilience and strength in their recent price actions, adhering closely to Elliott Wave principles. Today’s trading session, marked by volatile movements, provided yet another confirmation of the ongoing bullish trend.
#### Intraday Analysis and Key Developments
Earlier today, the NASDAQ broke out above the critical resistance level of 16,450, a move that initially seemed to set the stage for a robust upward momentum. However, the market took an unexpected spill shortly after this breakout, leading to concerns about a potential peak and subsequent fade to negative territory.
Despite the dip, the NASDAQ exhibited strong buying interest and quickly recovered, retaking the 16,450 level. This swift turnaround and subsequent rise by an additional 120 points above the breakout level have bolstered confidence in a continued upward trajectory.
#### Elliott Wave Structure
1. **Wave 1 (W1)**: The initial impulse wave from 15,700 to 16,450 established a solid foundation for the current bullish trend. This 750-point rise marked a significant move, setting up the subsequent waves.
2. **Wave 2 (W2)**: The correction from 16,450 to 16,098 followed, adhering to the typical characteristics of a Wave 2 correction. This retracement was necessary for consolidating gains and preparing for the next leg up.
3. **Wave 3 (W3)**: Breaking back above 16,450 and the subsequent 120-point rise signify the start of Wave 3. According to Elliott Wave theory, Wave 3 is often the most powerful and extended wave in the sequence.
#### Projected Target for Wave 3
Using the principles of Elliott Wave analysis, we can project the potential target for Wave 3. Typically, Wave 3 extends to 1.618 times the length of Wave 1. Given that Wave 1 was a 750-point move (from 15,700 to 16,450), we can calculate the target as follows:
- **1.618 x 750 points ≈ 1,213 points**
Adding this to the Wave 2 low of 16,098 gives a potential target range of:
- **16,098 + 1,213 ≈ 17,311**
Therefore, we can anticipate a target range of 17,300 to 17,400 for Wave 3. This substantial upside projection underscores the strength of the current bullish momentum.
#### Market Sentiment and Technical Indicators
The current market sentiment is highly supportive of this bullish scenario. Key technical indicators, such as the Relative Strength Index (RSI) and moving averages, are aligning with the bullish trend, indicating strong momentum and investor confidence.
Moreover, the recovery from the intraday dip and the ability to reclaim and surpass the 16,450 level demonstrate the resilience of the NASDAQ. This resilience is further corroborated by the high trading volume accompanying the upward moves, reflecting robust buying interest.
#### Risks and Considerations
While the outlook is predominantly bullish, it is essential to remain vigilant about potential risks:
1. **Market Volatility**: Intraday volatility, as seen earlier today, can lead to sharp fluctuations, necessitating caution.
2. **Resistance Levels**: As the NASDAQ approaches higher levels, it may encounter resistance, particularly around the 17,300 to 17,400 range.
3. **Economic Factors**: Broader economic factors, including inflation and geopolitical developments, could impact market sentiment and price action.
#### Conclusion
The NASDAQ’s ability to recover from an intraday dip and break above 16,450 again signifies a strong bullish continuation pattern. With a potential Wave 3 target of 17,300 to 17,400, the index is poised for substantial gains in the near term. Investors and traders should closely monitor the market, as the confirmation of Wave 3 presents significant opportunities for upside amid ongoing market dynamics.
