NASDAQ Is Bearish Against 11100 Resistance

31 July 2020

NASDAQ seems to be preparing to reverse sharply lower towards its March 23 lows around 6609 levels in the next few weeks. Bears remain inclined to be back in control and a break below 10300 immediate support would confirm.

NASDAQ potential wave counts from March 23 lows are as follows: The rally between 6609 and 11071 has completed 5 waves, hence an impulse. The sub waves are not labelled here but the indices seems to have carved a top around 11071.

Furthermore a potential double top was formed at 11071, which was followed by a sharp drop towards 10316, breaking below the previous support. It could be seen as first sign of a potential trend reversal ahead, after a religious uptrend.

The above impulse seems to be the last within a higher degree Wave ((5)), which indicated a potential end of an uptrend. For the above to be confirmed, NASDAS has to break below 6609 levels, going forward.

If the above proposed wave count and structure holds well, NASDAQ is certainly staying below 11071 mark and would reverse sharply towards 6609 lows. Also note that it could just be the beginning of a much deeper correction.

Going further, the indices has also carved Waves 1 and 2 around 10319 and 10952 levels respectively. If the above lower degree counts hold well, NASDAQ should drop lower from here, as Wave 3 unfolds. Traders might prepare to go short again.

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