NASDAQ COMPOSITE, Feigned FRAGILE UPTREND, Ready for A DROP!

Hello There!

Welcome to my new analysis about the NASDAQ COMPOSITE INDEX on the 2-day timeframe perspective. The NASDAQ COMPOSITE INDEX is the biggest listed index at the NASDAQ listing 3.000 important companies of the tech sector. The index recently is slowly recovering in a more or less fragile uptrend as stagflation developments are moving on while continued rate hikes by the FED are holding the price-action back from expanding into a stronger healthier uptrend. Now as inflation already decreases this does not mean that it converts into the real price action immediately with businesses recovering from high inflation rates going over into the financial markets immediately. In such periods it is much more common that the production, price-levels, and earning levels remain much more fragile setting the real price action up for more volatilities.

From a technical perspective the index is now building this huge ascending-wedge-formation in which the index simultaneously forms this wave-count with the next waves to endure and move directly into strong resistance levels from especially determined by this main descending-resistance-line. Once the index completed the wave-count within the wedge and also moves into the decisive resistance this will set the index up for a larger pullback completing the wedge and continuing to form the wave C in this whole wave-count. Now this does not mean there is no hope for a reversal to emerge however in this case the first target-zone and the reaction to it as marked in my chart will show if the index can stabilize in this area or prints further lows.

Thank you everybody for watching. It will be great when you support my idea and we move on forward together.
"Labor to keep alive in your breast that little spark of celestial fire, called conscience."

VP

Comment:

ANALYSIS UPDATE: The NASDAQ is finishing the wave-count within the ascending-wedge as expected in the schedule.

Comment:

MACRO UPDATE: Incoming U.S. CPI, PPI and PCE Data will offer indication of further the further market sentiment to consider and if a bearish acceleration is going to take place.

Comment:

ANALYSIS UPDATE: The NASDAQ continued to complete the major wedge count within the main ascending wedge formation within which it approached the crucial resistance cluster.

The NASDAQ after reaching the resistance cluster emerged with a massive pullback from where it broke out below the lower boundary of the ascending wedge formation and accelerated the bearish momentum towards the downside.