A follower to this blog asked if there was a Fibonacci resistance level for the Nasdaq Composite. The 07/05/21 blog “The next S and P 500 Resistance Level’’ measured the S&P 500 (SPX) growth from March 2009 to April 2010 with the SPX rally from March 2020. This examination showed that the rally from March 2020 had a Fibonacci ratio of 1.236 to the 2009 to 2010 rally at SPX 4437.64. Today 08/06/21 the SPX reached 4440.82.
The monthly Nasdaq Composite (IXIC) chart courtesy of Trading View illustrates the long-term Elliott wave count since 2009.
Using the same comparison as the SPX shows the growth rate of the supposed Primary wave “5” to Primary wave “1”. IXIC has so far is only slightly beyond a bulls eye – 1.236 Fibonacci ratio.
What’s amazing is that even though the growth rates of SPX Primary waves “1” and “5” are different from the IXIC Primary waves “1” and “5”, the ratios are close to each other and the target Fibonacci 1.236. This is evidence that the long-term wave counts for both indices could be correct. It implies the next bear market could last for years.