Since February 2009, there is an upward wedge of the heels of the wave. As a rule, a wedge is a reversal pattern with the target of starting a wedge. In the long-term perspective, a return is expected to the levels of 2009, more precisely 3200
What is it? The first wave in the third in the fifth or fifth in the fifth?
The third wave is usually a powerful impulse. Even the first wave shows a clear impulse. What we are seeing is either a divergent triangle or a wedge.
The fifth wave can be a wedge.
Our analysis of waves in a wedge even satisfies Elliot's law for impulse: the bottom of the fourth wave...
Now everything looks like a finished correction A-B-C
But there may be surprises:
Wave C may consist of 5 waves
To be double and triple zigzag
In the case of a triple zigzag - target 1800 (end of 4 wave)
The beginning of a bullish trend, we see in the breakdown level of 2700
From 225 to 155 looks like wave C - triple zigzag
Very fast and deep correction
The long-term flat correction, which we designated as triangle A-B-C-D-E, makes us doubt that the entire current correction, which lasts from 234, is only wave A. Most likely we are facing the end of A-B-C
It is possible that the minimum of correction has not yet been passed, but...
The current market situation turned out to be much more serious than it seemed at first glance.
The breakdown of the support levels of the S & P500 and NASDAQ indices suggests that the correction that is currently underway is a correction of a higher fractal level.
MSFT in these conditions demonstrates amazing resilience.
It is rather difficult to give...