NASDAQ has not terminated a wave "3,5" in wave "c" of a "RunningFlat"- or "ExpandedFlat"- pattern on Friday (SPX prob. finished this 3,5 already)! This is, why I would expect a GAP-opening for NASDAQ on Monday. There will be strong support at 6300 area (Fib-level 1.0 of wave "a" for this wave "c")! -Overall, the bearish mode will continue for the next days.
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Did some homework. Tried to find the bottom for the next upswing with diff. results. -Next days will show!
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I keep in mind, that there are lower targets possible: EW-theory also predicts a possible bottom at TP 5819 in a "ExpandedFlat"-pattern, which I don't want to discuss so far...
The conditions here are way oversold... I think the support comes in before then and we get a bounce on Monday. Fundamentally there is nothing wrong with the economy. They are making it seem like Chinese tariffs are going to be a big thing... Though they are important in terms of relationships with the Chinese, they don't have a significant impact on the American economy. They are tariffing imports not exports. They don't really import many things from the US. Remember there is a budget deficit. Trump's tariffing is more vital to determining whether the American consumer pays less or more of their income because companies will make up for the margin losses with increased prices. Or they could keep the prices the same and lose on margins causing less profits. But Trump is only implementing tariffs on steel and the sort, which the steel industry has been getting killed by cheap imports of steel. Though this will cause companies like Ford to experience inflation it should not effect the tech sector in general. You could see an uptick in inflation. This is why I think we see a bottom before 6300 I think fears in the DOW are real. I think fears in the NASDAQ are over blown fundamentally we should be in for a bottom pretty soon.
wolfah
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@Jnate189, many thanks for your comment and for your fundamental economic outlook, which I share! Such a correction, we are in at the moment, helps to set the bottom, for a very strong upswing in the coming month and EW-theory predicts already! -Anyway, for the coming 1 or 2 weeks I'm extremely bearish! The market needs to find the level for this new bottom first and this level will def. be below 6300! Thx again and save trades!