Nasdaq Composite – Elliott Wave Count

Both the S&P 500 and the Dow Jones Industrial Average 2022 bear moves from their respective all-time highs  have the look of Elliott wave corrective patterns.  The Nasdaq Composite (IXIC) and the Nasdaq 100 (NDQ) declines from November 2021 to October 2022 appear to be Elliott wave motive patterns. In particular extended Impulse waves.  If these patterns are correct, they could provide clues  to what could be a very important top for US stocks.  

The daily IXIC chart courtesy of Trading View illustrates the Elliott wave count of the decline into the October 2022 bottom.

There are several Fibonacci relationships within the  November 2021 to October 2022 structure that imply it’s  an extended Impulse wave

Within the presumed Intermediate wave (1).

Minor wave “2” is .382 of Minor wave “4”.

Minor wave “1” is .382 of Minor wave “5”.

Within the presumed Minor wave “3”.

Minute wave “iv” – boxed is .618 of Minute wave “ii” – boxed.

Minute wave “v” – boxed is .618 of Minute wave “i” – boxed.

The rally after the 10/13/22 bottom appears  to be a developing Elliott wave – Double Zigzag.

The lower end of the Intermediate wave (2) target is close to a .50 retracement of the August to October decline.  The upper end of the target zone is near a .382 retracement of the November 2021 to October 2022 bear move.  

If the IXIC can rally into the target zone during mid – December 2022, it could mean an import top for US stocks.  

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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