Stock market is closed today due to Easter holidays, but we want to share an interesting development on technology sector NASDAQ100.
NASDAQ is turning back down in current risk-off sentiment, which may last for some time, as we see a new intraday five-wave bearish reversal from the previous highs.
In Elliott wave theory, every five-wave reversal suggests a change in the trend, at least for short period of time. After every five waves we can expect a three-wave corrective pullback before a trend continuation.
Well, as you can see, NASDAQ100 clearly shows a five-wave drop from the highs that can be slowly coming to an end, as we see it trading in wave (v). So, ideally we will see some support formation in the projected area early next week that can be followed by a three-wave (a)-(b)-(c) corrective rally back to 14300-14700 resistance zone before we will see a bearish continuation.
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NASDAQ100 has a completed intraday five-wave cycle from the highs, so a-b-c corrective recovery can be already in progress before we will see a continuation lower. First resistance is around 14300 level, but if we see bigger corrective rally, then second resistance would be around 14730 level.
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NASDAQ100 remains nicely bearish as expected and there can be room for more weakness to complete a five-wave cycle of the higher degree.