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Understanding NASDAQ’s Elliott Wave Forecast For July 24, 2023: Unveiling The Possibility Of A Significant Correction
A recent close examination of the NASDAQ’s performance reveals thoughts of an impending considerable correction. As the NASDAQ recently hit the 14,300-14,444 mark, a target that I have been anticipating for a few months, the index may be set for a major downturn.
Subheading 1: NASDAQ’s Performance Threshold
The NASDAQ must surpass a certain threshold, specifically 14,210, to avoid the initiation of a downward trend that may commence this week. The downturn could be a Wave 3 or a zigzag, two elements in the Elliott Wave Theory. To negate these possibilities, the NASDAQ should clear the .786 resistance, which stands at 14,325.
NASDAQ_threshold = 14210
NASDAQ_resistance = 14325
If the NASDAQ cannot clear this resistance, then the index could be in for some significant disturbance in the market.
Subheading 2: The Implication of a Downward Wave 3
In the event of a downward wave 3 formation, the NASDAQ could hit a low point of 13,500-13,535. This projection is based on the 1.618 X Wave 1 formula. If a zigzag instead occurs, the target could be as low as 13,750.
“A downward wave 3 or a zigzag could significantly impact the NASDAQ’s performance.”
However, these worst-case scenarios can be avoided if the NASDAQ manages to clear the 14,325 resistance.
Subheading 3: The Importance of Clearing the 14,325 Mark
The 14,325 resistance level is a crucial mark for the NASDAQ. This figure represents the point at which the index can prevent a major downturn. If the NASDAQ clears this resistance, then the index could successfully avoid the anticipated correction.
Subheading 4: The Worst-Case Scenarios
Subheading 4.1: The Impact of a Downward Wave 3
A downward wave 3 could see the NASDAQ hit a low point of between 13,500 and 13,535. This is a significant drop, and it would undoubtedly affect investor confidence and market stability.
Subheading 4.2: The Consequences of a Zigzag
A zigzag, on the other hand, could lead to a slightly less severe drop, with the NASDAQ potentially falling as low as 13,750. However, this would still represent a significant decrease and could have serious implications for the market.
Neither of these scenarios would be ideal for the NASDAQ, hence the importance of clearing the 14,325 resistance.
Subheading 5: The Path Forward
As we move forward, the NASDAQ has a significant task ahead of it. The index needs to clear the 14,325 resistance to avoid a major correction. This will require strong market performance and investor confidence. The coming week will be pivotal in determining the path that the NASDAQ will take.
Subheading 6: Conclusion
The NASDAQ’s Elliott Wave forecast suggests that the index could be on the brink of a significant correction. However, this can be avoided if the index overcomes the 14,325 resistance. The upcoming week is crucial for the NASDAQ, and the market will be watching closely to see how events unfold.
