Cramer vs. Wavegenius and 1000 more points in $COMPQ NASDAQ minimum
### $COMPQ Elliott Wave Forecast — August 7, 2024
The Elliott Wave theory provides a robust framework for understanding market movements, and the recent actions in the NASDAQ Composite Index ($COMPQ) are a prime example of this. Despite bearish predictions from media figures like Jim Cramer, the technical indicators tell a different story. Let’s break down the current situation and forecast the next moves.
#### Market Sentiment and Predictions
Jim Cramer, on his show Mad Money, predicted a significant crash for tomorrow, suggesting a prolonged bear market similar to the one seen in 2022. However, this prediction seems to be in stark contrast to the current market sentiment and technical signals.
#### NASDAQ Futures Analysis
Tonight, NASDAQ futures have shown remarkable strength. They have swung from being down 110 points to being up 220 points, effectively nullifying the bearish outlook presented by Cramer. This turnaround in the futures market indicates strong buying interest and suggests that market participants are not buying into the doom-and-gloom narrative.
#### VIX as a Contrarian Indicator
The Volatility Index (VIX), often referred to as the “fear gauge,” hit extremely high levels recently, touching 65. Historically, VIX readings in the 65–85 range have marked significant market bottoms. In the past 20 years, such high readings have consistently been followed by market rallies. This pattern suggests that the recent VIX spike may have been a capitulation point, indicating a potential bottom.
#### Elliott Wave Analysis
1. **Wave 3 Setup**:
— The NASDAQ Composite has recently completed a corrective Wave 2, with the low marked by the extreme VIX readings and subsequent reversal.
— The sharp turnaround in NASDAQ futures, currently up 220 points, sets the stage for an impulsive Wave 3. Wave 3 is typically the most powerful and extended wave in the Elliott Wave sequence, often characterized by rapid and substantial gains.
2. **Projected Move**:
— Based on the current setup, we can expect a significant upward move in the NASDAQ. Given the strong after-hours performance, a 1,000-point rally over the next few days is within the realm of possibility.
— The recent bottom, marked a few days ago when the VIX hit 65, aligns well with the start of a new impulsive wave. The 220-point breakout in the futures further supports this bullish outlook.
3. **Targets**:
— If the NASDAQ continues to follow this Elliott Wave pattern, the next key resistance levels will come into play. Breaking through these levels will confirm the Wave 3 advance and set higher targets.
— A 1,000-point rally would take the NASDAQ well into the 17,000 range, aligning with the typical projections for a Wave 3 move.
#### Conclusion
Despite the bearish outlook presented by some market commentators, the technical indicators and Elliott Wave analysis suggest a different story. The NASDAQ futures’ strong performance, coupled with historically significant VIX readings, points to a market bottom and the beginning of a powerful Wave 3 rally.
In the coming days, investors should watch for confirmation of this move through continued strength in the NASDAQ and the breaking of key resistance levels. While no forecast is ever guaranteed, the current setup provides a compelling case for a significant upward move in the NASDAQ, potentially adding another 1,000 points to its value in the near term. As always, maintaining a balanced view and considering both technical and fundamental factors will be crucial for navigating the market’s next moves.
