NASDAQ - Zig zag wave and trend line converge - Target 10,000???
Looks like a possible zig zag correction unfolding. I was expecting some form of flat correction, but there where two failed rallies this week. In addition, several trend lines are all pointing towards 10,000. The fib levels for a zig zag correction also give a nice 1.0 Wave A retracement from the top of Wave B to the same exact 10,000 level.
What comes after that is hard to tell. This correction to 10,000 would be enough to satisfy a standard 0.618 fib level from the bottom correction. That could mean the NASDAQ is ready to continue on with its rally and test ATH. Then we could see some form of flat correction (1.0 up to 1.2 fib extension before another smaller/larger corrective wave). OR, this could be a Wave A of a zig zag correction which would give us a bounce for Wave B and then a more deeper correction back towards March lows.
What comes after that is hard to tell. This correction to 10,000 would be enough to satisfy a standard 0.618 fib level from the bottom correction. That could mean the NASDAQ is ready to continue on with its rally and test ATH. Then we could see some form of flat correction (1.0 up to 1.2 fib extension before another smaller/larger corrective wave). OR, this could be a Wave A of a zig zag correction which would give us a bounce for Wave B and then a more deeper correction back towards March lows.
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1D time frame for MACD and RSI
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FYI on the longer term view the blue arrow hits the trend line on November 2nd. That was not on purpose it was just coincidence. I noticed it afterwards. Interesting that it worked out that way.
