The Nasdaq has hit 2 important levels this week where prices inverted direction. After reaching (and surpassing) the -0.618 extension of the 0-1 we found Support @ the 1-1 extension of the same 0-1 leg extended from 2. This is particularly important, specially the second test, since it coincided with the tax hike announcement. The implication is that Buyers are in control in this stage even though no signal has emerged from technical indicators.
The implication is that this is a 5 wave impulse wave with target @14400. Only penetration of 13300 would deny this wave count.
There are very strong divergences on the weekly time frame, but until the RSI doesn't cross below the 50 level they aren't confirmed and the market could still deny them.
Note of caution. Don't try and anticipate what prices will do, just follow them.
The implication is that this is a 5 wave impulse wave with target @14400. Only penetration of 13300 would deny this wave count.
There are very strong divergences on the weekly time frame, but until the RSI doesn't cross below the 50 level they aren't confirmed and the market could still deny them.
Note of caution. Don't try and anticipate what prices will do, just follow them.