NDX has broken the previous high on the back of the skyrocketing FANG stocks. Surely the moon is now in sight?
I am not so sure and looking back to the start of this EW cycle it may be that a top is very close. Cycle wave III was a fib 4.238 of wave I and 0.618 of the waves I to III range is around 9870.
Even with the massive rises in wave V RSI has diverged from the high in wave III and continues this trend.
If correct cycle wave V may be an ending diagonal which may have reached wave 3 to be followed by waves 4 and 5 with wave 5 maybe spiking to the 10000 point.
Good work! Note that the middle of your (1) has what looks like a Horizontal Triangle, which only appear in wave "B" or wave "4" positions. Since each motive wave (1, 3, and 5) of
EDT's subdivide into three wave structures, this is what you need within a supposed wave "1" of an EDT. Typically the wave "2" of an EDT is deep and will go beyond a .618 retrace of the first wave.
The NDX supposed wave (2) retraced about .786 of wave (1) - what you could expect of a EDT wave "2". The rally from 03/23/20 could be wave "A" of (3). Within EDT's the third wave is almost always shorter
than the first wave, your upside projection is in the general area for a possible EDT termination point.
This is a very exciting discovery. Please keep us updated.
Mark
Geofftv1
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@markrivest, Thanks Mark, I have decidedvto trade NDX which Isvwhy I looked at the wave structure in detail.
What I am not sure about is if SPX and DJI will also make new highs, what are your thoughts?
EDT's subdivide into three wave structures, this is what you need within a supposed wave "1" of an EDT. Typically the wave "2" of an EDT is deep and will go beyond a .618 retrace of the first wave.
The NDX supposed wave (2) retraced about .786 of wave (1) - what you could expect of a EDT wave "2". The rally from 03/23/20 could be wave "A" of (3). Within EDT's the third wave is almost always shorter
than the first wave, your upside projection is in the general area for a possible EDT termination point.
This is a very exciting discovery. Please keep us updated.
Mark