Generational Crash OVER. 12–18 years of bull market in $COMPQ $NDX NASDAQ?
Note: This is an AI article generated by CHAT GPT
### $COMPQ $NDX NASDAQ Elliott Wave Update — August 6, 2024: Futures Up 400 Points
The NASDAQ Composite ($COMPQ) and NASDAQ-100 ($NDX) have experienced significant volatility in recent weeks, culminating in a dramatic downturn reminiscent of past market crashes. However, there are strong indications that the worst may be behind us, with futures pointing to a substantial rebound.
#### Intraday Elliott Wave Analysis
The intraday pattern observed today suggests a classic Elliott Wave 1–2–3 formation:
- **Wave 1**: The NASDAQ rallied from 15,700 to 16,450, a 750-point move.
- **Wave 2**: This was a corrective phase, taking the index down from 16,450 to 16,098.
- **Wave 3 Projection**: According to Elliott Wave theory, Wave 3 is often 1.618 times the length of Wave 1. Applying this multiple to the 750-point move of Wave 1, we project an additional 1,200 points of upside from the Wave 2 low of 16,098. This sets a potential target of 17,300 to 17,400 for Wave 3 by the end of the week.
#### Market Sentiment and Historical Context
Fear levels in the market have spiked to extremes not seen since the 2008 financial crisis and the 2020 COVID-19 crash. The current situation bears striking similarities to these past events:
- **2008 Financial Crisis**: Marked by a severe and prolonged downturn, followed by a multi-year recovery.
- **2020 COVID-19 Crash**: A sharp and sudden drop, with a subsequent rapid recovery fueled by unprecedented fiscal and monetary stimulus.
The recent crash in the NASDAQ, with a 3,000-point drop, mirrors these historical events both in terms of magnitude and market psychology. The extreme levels of fear, as evidenced by the VIX (Volatility Index), suggest a potential market bottom, as such high fear often precedes significant rebounds.
#### Technical Levels and Projections
- **Immediate Support**: The Wave 2 low of 16,098 is a critical support level. As long as the index remains above this level, the bullish Wave 3 projection remains intact.
- **Upside Targets**: The primary target for Wave 3 is 17,300 to 17,400. This range represents a significant recovery and could mark the beginning of a longer-term uptrend.
#### Generational Recovery Potential
The depth of the recent crash suggests it could be classified as a Wave 2 correction within a larger Elliott Wave cycle. This interpretation has profound implications:
- **Wave 2**: Characterized by deep corrections that set the stage for prolonged bullish phases.
- **Wave 3**: Historically, Wave 3 is the most powerful and extended wave, often leading to multi-year or even multi-decade bull markets.
Given the severity of the recent decline, which parallels the major crashes of the past two decades, the potential for a generational recovery is substantial. This would mean 12 to 18 years of sustained market growth, driven by a Wave 3 rally.
### Conclusion
The NASDAQ appears poised for a significant rebound, with futures up 400 points and a projected Wave 3 target of 17,300 to 17,400 by the end of the week. The extreme fear levels, comparable to those seen during the 2008 and 2020 crashes, suggest that a market bottom may be in place. If this is indeed a Wave 2 correction, the subsequent Wave 3 rally could herald a generational bull market, offering substantial upside potential over the next decade and beyond. Investors should watch the 16,098 support level closely and consider the possibility of a major market turnaround.
