The Nasdaq 100 index (NDX) price continues to be observed in a down trending Wyckoff re-distribution trading range. The NDX price broke the support of the previous trading range on Jan 18, 2022 and the downward price move was halted several days later with the selling climax (SC) event.
Here I offer two scenarios for the future NDX price: (1) a bullish scenario, and (2) a bearish scenario.
For the bullish scenario to play out, the NDX price needs to break the closing price on May 25 ($11,935), May 26 ($12,282), and May 27 ($12,665). Failure to do so would invalidate the bullish scenario.
For the bearish scenario, the price would need to reverse then break the trading range support ($11,334). If this were to occur, the NDX would likely find support at around $10,500. Failure to break the trading range support would invalidate the bearish scenario.
Given the strong positive correlation between the NDX and BTC, which can be viewed as a risk-on stock, Bitcoin HODLers will be watching these events play out with great interest. Happy trading!
Wyckoff abbreviations: automatic rally (ARa), selling climax (SC), secondary test (ST), upthrust (UT), failed upthrust (FUT), shakeout (SO), sign of weakness (SOW), upthrust after distribution (UTAD).
This is not financial advice. I am not your financial advisor. This is my opinion.
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The fact that Friday’s bullish bar closed above the open of the bearish bar on June 10 supports the bullish scenario and suggests continuation to the upside. Let's see what happens on Monday! Happy trading!
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The rally failed and, therefore, can be labeled as a failed upthrust (FUT). Since the rally failed, the price reversed and we are now in a reaction that will likely test the trading range support at around $11,334.
Let's see how the price reacts to the trading range support (e.g., Will it break through the support or bounce off of the support?).
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The NDX price dipped to $11,334 in what appears to be a secondary test (ST).
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The NDX price is currently undergoing a Wyckoff upthrust attempt. Will it break through the resistance around 12,000 or will the upthrust attempt be rejected?
Why not May 16th left shoulder - and June 4th 5th - a Head -- and now June 27th - June 30th make the rightsholder on its way down???
Eightchains
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@CapeAfrican, Yeah, could be. We'll see. I would be more interested in comparing the present rally compared to previous rallies in terms of effort versus result.
CapeAfrican
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@djr0726, All rallies were 7-8 days up and 12 plus days on the bear move down - Well 7 days was it - new wave down,....we not going to see 12000 again
Eightchains
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@CapeAfrican, Thank you for the comment. Yeah, that's consistent with the update I've provided. It's possible that we could rally at the trading range support. We'll see.
Eightchains
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@CapeAfrican, Yet here we are with the price greater than 12,000. Test of support 100% consistent with my prediction then another upthrust within the trading range.