$COMPQ $TQQQ $QQQ Elliott Wave Update 11AM ET
## NASDAQ 11AM Elliott Wave Update
As of 11 AM today, the NASDAQ Composite Index is navigating a challenging phase, showing signs of a corrective C wave decline. The index, which has been under pressure recently, now faces a critical juncture where support levels will determine the short-term trend and potentially set the stage for future movements.
### Current Wave Analysis
In Elliott Wave Theory, the market moves in predictable patterns, with waves A, B, and C typically representing a correction following a preceding trend. The NASDAQ is currently in the midst of a C wave, generally characterized by a strong downward movement. The A wave initiated this corrective phase, followed by a B wave rebound, and now the C wave is progressing, which often marks the final leg of the correction.
### Critical Support and Resistance Levels
For the current uptrend to remain intact, the NASDAQ must find support in the critical 17,275–17,280 range. This level is crucial for maintaining bullish sentiment, albeit the uptrend has been shaky. If the index holds above this support, it could provide the foundation needed for a potential reversal.
A best-case scenario would see the NASDAQ reversing course and breaking above the 17,500 level. Achieving this would not only confirm the end of the C wave but could also set the stage for a new bullish impulse, possibly a Wave 3. Wave 3s are typically the most powerful and extended in an Elliott wave sequence, offering substantial upside potential. The upcoming Federal Reserve meeting and a slew of major earnings reports this week add a layer of complexity and potential catalysts for such a move.
### Potential Risks and Downside
However, if the NASDAQ fails to hold the 17,275 support level, the index risks continuing its downward trajectory. In this scenario, we could see a full fifth wave down, potentially retesting the previous low around 17,050. This would represent a significant extension of the C wave and could signal deeper corrective action, unsettling the current market structure.
Breaking below 17,050 could invalidate the bullish thesis and lead to further declines, with investors becoming increasingly risk-averse amid macroeconomic uncertainties and market volatility. The behavior of the index around these key levels will be critical in determining the next phase of market action.
### Conclusion
The NASDAQ is at a pivotal point in its Elliott wave cycle. The immediate focus is on whether the index can hold the crucial support range of 17,275–17,280. A hold at this level, followed by a reversal above 17,500, could pave the way for a robust Wave 3, fueled by upcoming market events such as the Federal Reserve meeting and major corporate earnings.
However, failure to maintain support could see the index retesting 17,050, potentially extending the current correction and leading to a more prolonged period of uncertainty. Traders and investors should closely monitor these levels and be prepared for potential volatility as the market reacts to key data and events in the coming days.
