Nasdaq 100 (NQ_F )shows a bullish sequence from October 2022 low favoring further upside. The rally higher from 10.13.2022 is unfolding as Elliott Wave leading diagonal. Up from 10.13.2022 low, wave ((1)) ended at 16062.75 and pullback in wave ((2)) ended at 14140.25 low. Wave ((3)) finished at 17165.94 high as the 1 hour chart below shows. Pullback as wave ((4)) is currently in progress with internal subdivision of a zigzag (A), (B) and (C).
Down from ((3)), wave (A) is developing an impulse structure. Wave 1 ended 17077.75 low and bounced slightly completing wave 2 at 17131.00. Wave ((i)) of 3 in lesser degree ended at 16938.25 low and pullback as wave ((ii)) ended at 17049.75 high. Then, the Index dropped strongly to 16522.00 to complete wave ((iii)). Wave ((iv)) bounce ended 16587.25 and last leg lower ended at 16443.25 as wave ((v)). This completed wave 3 in higher degree.
NQ_F 60 Minutes Elliott Wave chart
Wave 4 correction finished at 16583.75 and the Index resumed to the downside. Expect NQ_F to continue to the downside in wave 5 to end complete wave (A) in higher degree. Wave 5 of (A) could drop to 16410 – 16357 area (1.236 – 1.618 inverse Fib retracement). After which, we should see a reaction higher in wave (B) before it resumes lower again. Near term, as far as pivot at 17165.94 high stays intact, the Index has scope to extend correction lower.
NQ_F Elliott Wave video
Unleashing the Potential: Nasdaq 100 (NQ_F) Set for a Bullish Correction [Video]
In the world of trading and investing, being able to accurately predict the market’s direction can be a game changer. And with the current state of global affairs, having the right information and insights on the market can mean the difference between success and failure. This is why it is crucial for traders and investors to pay attention to key market indicators and fluctuations, such as those affecting the Nasdaq 100 (NQ_F) index. In this article, we will take a closer look at the Nasdaq 100 index, its recent performance, and what we can expect in the near future.
Understanding the Nasdaq 100 Index
The Nasdaq 100 (NQ_F) is an index that includes the top 100 non-financial companies listed on the Nasdaq stock exchange. These companies come from various industries, including technology, healthcare, and consumer goods, making it a key indicator for the overall health of the US economy. The index is updated every quarter to reflect any changes in company rankings, with the top 100 companies being reevaluated based on their market capitalization.
Recent Performance
Over the past year, the Nasdaq 100 index has shown remarkable resilience despite the challenges brought about by the COVID-19 pandemic. In fact, it has performed better than the S&P 500 and Dow Jones Industrial Average, with a 37.34% increase in 2020. This can be attributed to the fact that many of the companies in the index are in the tech and healthcare industries, which have seen increased demand during the pandemic.
However, as with any market, there have been fluctuations. In the first quarter of 2021, the Nasdaq 100 index experienced a correction, with a 10% decline in value. This was due to concerns about rising interest rates and inflation, which caused investors to shift their focus away from growth stocks. But despite this correction, the Nasdaq 100 index has already recovered and is showing signs of a potential bullish correction in the coming months.
Factors Contributing to a Bullish Correction
There are several factors that point towards a potential bullish correction for the Nasdaq 100 index. These include:
– Strong Earnings: The first quarter of 2021 saw an impressive performance from many of the companies listed on the Nasdaq 100, including Apple, Amazon, and Microsoft. This has boosted confidence in the index and may attract more investors.
– Continued Growth in Tech and Healthcare Industries: These two industries have been leading the Nasdaq 100 index, and with the rapid development of technology and ongoing demand for healthcare services, it is likely that this growth will continue.
– Low Interest Rates: The Federal Reserve has indicated that it will maintain its low interest rate policy, which is favorable for growth stocks. This can further boost the Nasdaq 100 index in the coming months.
– Positive Economic Outlook: The International Monetary Fund (IMF) has projected a global economic growth of 6% in 2021, which bodes well for the companies listed on the Nasdaq 100 index.
What the Technicals Say
In addition to these factors, technical analysis also points towards a potential bullish correction for the Nasdaq 100 index. The index has been trading within an ascending triangle pattern, which is a bullish chart pattern. This suggests that there is continued buying pressure as investors eagerly anticipate a breakout.
Furthermore, the Nasdaq 100 index has shown strong support at the 100-day moving average, demonstrating the index’s resilience in the face of market fluctuations. This level could act as a support area in the event of any correction, making it an attractive entry point for traders and investors.
Taking Advantage of a Bullish Correction
If you are looking to take advantage of a potential bullish correction in the Nasdaq 100 index, there are several strategies you could consider. Some options include:
– Investing in Index Funds or ETFs: These are investment vehicles that track the performance of the Nasdaq 100 index, allowing you to invest in the index as a whole without having to buy individual stocks.
– Focusing on Strong Performers: You could also choose to invest in individual companies within the index that have a strong history of growth and stand to benefit from current market conditions.
– Utilizing Options: Options trading can be a great way to take advantage of market movements with less capital. Calls and puts can be used to bet on a bullish or bearish move in the Nasdaq 100 index.
In conclusion, the Nasdaq 100 index has shown strong performance in recent times, with indications of a potential bullish correction on the horizon. While no one can accurately predict the market’s movements, it is essential to stay informed and make informed investment decisions. As always, it is crucial to conduct thorough research and consult with a financial advisor before making any investment decisions. Keep an eye out for market updates and potential opportunities to capitalize on the Nasdaq 100 index’s potential bullish correction.
