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**NASDAQ Elliott Wave Update for April 18, 2024**
The NASDAQ Composite Index has been undergoing a complex correction phase over the past couple of months, exhibiting a multi-wave pattern that is characteristic of an ABC zigzag. Let’s dissect the recent Elliott Wave developments to gain insights into the potential future trajectory of the NASDAQ index:
**Recent Price Movements and Elliott Wave Count:**
1. **Wave Structure:**
– **ABC Zigzag:** The NASDAQ has completed what appears to be the 5th wave down within a C wave of a significant ABC zigzag correction that commenced a couple of months ago. This complex corrective structure is often seen in mature markets and could be indicative of a potential reversal or bottoming pattern.
2. **Technical Indicators:**
– **Relative Strength Index (RSI):** The RSI is approaching the 1-year low, which was established during the trough of Wave 2 in the long-term structure. A convergence towards this level often serves as a bottoming signal, suggesting that the index might be nearing a potential reversal point.
– **Volatility Index (VIX):** The VIX, often referred to as the ‘fear gauge’, is hovering around the 19-20 range. Such levels can act as a confirmation of a market bottom, especially when aligned with other technical and wave pattern indicators.
3. **Key Price Levels to Monitor:**
– **Immediate Resistance:** For a bullish reversal to be validated, NASDAQ needs to gap up or rally by approximately 120 points above the 15,810 level. Furthermore, the index must sustain this level without significant retracement to confirm a potential bottom.
– **Potential Reversal Targets:** Should NASDAQ clear the 15,810 resistance, the subsequent target based on the .618 Fibonacci retracement level would be in the range of 16,200-16,250 in the short term.
**Conclusion:**
The NASDAQ Composite Index is currently navigating a critical juncture within its Elliott Wave structure, with a complex ABC zigzag correction nearing completion. The technical indicators, including the RSI and VIX, are suggesting potential bottoming signals, aligning with the wave pattern developments. For a bullish reversal to be confirmed, NASDAQ must breach and sustain above the 15,810 resistance level. Should this level be surpassed, traders and investors can anticipate a short-term target between 16,200-16,250, based on the .618 Fibonacci retracement level. As the market unfolds, it is essential to closely monitor these key price levels and indicators to adapt trading strategies effectively and capitalize on potential market movements.
