Nasdaq 100 Short-Term Update |
Nasdaq 100: 2361.39
Short-Term Trend: sideways
Outlook: A week ago there were three possible structures for wave (X) (the move from the Feb 2011 top): Contracting Triangle, Expanding Triangle and Flat. We wanted to allow for all these three to remain possible, so we expected a move down twd 2100 level. However, we also noted that a move abv the 2255 would carry very bullish implications, so we favored a long position on break abv this level. And as you know the market rallied strongly.
Now, if the market stalls for a few weeks, we would favor one final decline in wave E of what appears to be a Contracting Triangle from Feb 2011 top. If however the prices move abv 2417 in the next couple of weeks, then the odds will suggest wave (X) was actually a Flat that terminated at June's bottom.
Strategy: The hypothetical long from 2260 was closed at 2360 with 100 pts profit. Stand aside.
About the author: Alexander Nikolov
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