Nasdaq Composite Update – June 30, 2022

The 06/27/22 blog “S&P 500 Could Rally to 4,100”  noted that a break above S&P 500 (SPX) resistance  in the 3940 area  could open  a move to moderate resistance at 4,020 and possibly 4,100.  On 06/28/22 the SPX marginally broke above 3,940 and then declined.

The SPX broke below support that was noted at 3,890, opening the door for a drop that continued through out the session.

What happened on 06/28/22 was another sign that US stocks are probably in a bear market.  In a bull market, an early session break above resistance  typically would ignite a day long rally.

The Nasdaq Composite (IXIC) has the clearest Elliott wave count that was illustrated in the 06/23/22 blog “Prelude to a Short – Term Bottom?”.

The daily IXIC chart courtesy of Trading View updates the Elliott wave count.

Its possible the decline from 06/28/22 is  Minute wave “b” – boxed of a developing Minor wave “4”. If so it could rally into a .236 Fibonacci retracement of the IXIC – November 2021 to June 2022 decline. 

If the IXIC  breaks below the 06/30/22 bottom at 10,850.01 it could mean that Minor wave “4” is complete and  headed to significant support in the 10,250 area.   

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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