When you are riding on a small bull it is always good to watch out for the big bear at the back.Refer to my previous post on September 10, at that time Nasdaq has already broken its upper trend line, S&P has just reached the trend line and Dow was moving towards the line. After taking a short pause on Friday September 11, the three indices continued to move higher.
Nasdaq has moved further away from the resistance line without any hesitation.
S&P was able to punch through the upper resistance level at the close of Wednesday's session
Dow has finally reached the upper resistance line. It's just a matter of time before it breaks the resistance. At this juncture, the major wave B scenario can be put aside for a while. Assuming Dow is going to follow the footsteps of Nasdaq and S&P, let's look at the likely chart patterns for Nasdaq.
After completing its major wave (II) in early July, the first possible wave count is as shown above. Nasdaq is currently in sub-wave iii of wave 3.
Another possible wave count is as shown above, Nasdaq has completed a-b-c wave 2 and is currently in wave 3. The magnitude of next consolidation will determine which is the right count.
chan,
ReplyDeleteis the first possible wave count iii of 3 supported by the high volume
Last three sessions volume were impressive 7.06, 7.84 and 7.56 billions compared to last 10 day average of 5.9b and last 20 day average of 5.95b. I am looking at Hang Seng closely. It appears that Hang Seng is at sub-wave iii of wave 5 of major (I). One of my possible exit point is at Hang Seng sub-wave v of wave5.
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