This is today's 3 HR chart update of the Weekly Chart I did last night of the NASDAQ 100 CASH Index
NDQ
) projecting its path for the rest of this Presidential Election year
For the rationale why this count and path is the most likely, I would encourage you to read the linked post.
The Fed obliged as expected with a 50 basis point funds rate cut today.
The rise in wave a of b of ii of the ending diagonal was a result of the rumors of the impending Fed action.
In a classic "buy the rumor, sell the news" predictably stocks tanked within 10 mins of the Fed's announcement.
News sites and pundits were going nuts claiming this drop is a result of the Fed showing "it knows something" and "why" the extraordinary intermeeting 50 basis point rate cut (which was last done at the height of the Financial Crisis in October 2008)?
The logic of these pundits goes something along the lines of the extraordinary move of the Fed freaked out the markets.
This is hogwash lol
Markets are doing what they do and Elliot wave analysis predicted this drop (as I showed in my chart from last night). The "news" was just an excuse.
The markets were expecting and wanting this interest rate reduction. If the Fed didn't give it THEN the markets would have truly crashed today.
The drop since mini-wave b was just a classic "buy the rumor, sell the news" and temporary profit-taking.
The rise in wave c of b of ii is coming tomorrow and may have already begun in the Futures (
NAS100USD
) in the Asian session.
This wave c of b of ii should go to the 78.6% retracement of larger wave a of ii drop (from last week) which also coincides with where c = a and which would fill the gap from last Monday in the Cash Index.
So far we are on track and following the path.
Will update as things change.
Good luck everyone :)
NDQ
) projecting its path for the rest of this Presidential Election year For the rationale why this count and path is the most likely, I would encourage you to read the linked post.
The Fed obliged as expected with a 50 basis point funds rate cut today.
The rise in wave a of b of ii of the ending diagonal was a result of the rumors of the impending Fed action.
In a classic "buy the rumor, sell the news" predictably stocks tanked within 10 mins of the Fed's announcement.
News sites and pundits were going nuts claiming this drop is a result of the Fed showing "it knows something" and "why" the extraordinary intermeeting 50 basis point rate cut (which was last done at the height of the Financial Crisis in October 2008)?
The logic of these pundits goes something along the lines of the extraordinary move of the Fed freaked out the markets.
This is hogwash lol
Markets are doing what they do and Elliot wave analysis predicted this drop (as I showed in my chart from last night). The "news" was just an excuse.
The markets were expecting and wanting this interest rate reduction. If the Fed didn't give it THEN the markets would have truly crashed today.
The drop since mini-wave b was just a classic "buy the rumor, sell the news" and temporary profit-taking.
The rise in wave c of b of ii is coming tomorrow and may have already begun in the Futures (
NAS100USD
) in the Asian session. This wave c of b of ii should go to the 78.6% retracement of larger wave a of ii drop (from last week) which also coincides with where c = a and which would fill the gap from last Monday in the Cash Index.
So far we are on track and following the path.
Will update as things change.
Good luck everyone :)
