1/19/2017 – NASDAQ Composite High Alert
Trendy stock chart members, I consider this article to be a NASDAQ Composite high alert.
For those that do not recall, technology is usually the last group to rally. Step back and looks what has been happening lately. All the "Trump" stocks have been stalling while the NASDAQ rallied to new highs to begin the new year.
NASDAQ Composite High Alert
I have been dealing with horrible headaches the last several days, but after waking up around 8 pm tonight and noticing a pattern I have been watching for lately, I thought it was extremely important to relay the possible bearishness that could be forthcoming. I also felt it was necessary to update the advanced Elliott wave analysis page with illustrations and new descriptions for the different types of patterns.
All longer-term Trendy Stock chart members know that I am a tried and true bullish investor. But what I see developing, does not look good. So how bad can it get? I'll review that below.
Let's start off with one of the main patterns I have been watching for - an Ending Diagonal wave pattern. Let's take a look.
NASDAQ Composite's Ending Diagonal Wave Pattern
An Ending Diagonal wave pattern is where Wave 4 pulls back into the territory of Wave 1. It looks pretty similar to a regular Impulse wave pattern. However, the main difference is that Wave 4 does not enter into the territory of Wave 1 in an Impulse wave pattern.
The end of Wave 5 appears to be indicated by an Abandoned Baby Top candlestick pattern. This is an extremely powerful bearish reversal candlestick. Follow the link and definitely read up on what I have to say about the pattern as well as how it is identified on a chart.
This is a 3 month daily candlestick chart for the NASDAQ Composite.
An Ending Diagonal wave pattern appears at the end of an Impulse wave pattern, typically in a Wave 5 area of some degree. If that is the case, the.....
To continue reading this article on the NASDAQ Composite, which includes downside support price targets to watch for, you must first login. If you are not a Trendy Stock Charts member, consider subscribing today. I have several different subscription plans available.
You will also gain access to all my candlestick pages, including the ones discussed in this article. Membership benefits also include access to my advanced Elliott wave areas where I include detailed illustrations for the different patterns, including the ones I see on the NASDAQ. And believe me, they don't look good.
Even if you are a longer-term investor, you could miss out on a significant trading opportunity if you decide to just hold your shares. You need to read the article to find out more....