NASDAQ 8/4/2024
I am currently bearish on the NASDAQ and am closely monitoring critical support levels that indicate the conclusion of Internal Wave 5. We anticipate a potential rally on the buy side, specifically in Internal Leg 4, which may take the form of patterns such as ABC, WXY, or Flat before a reversal and continuation of the primary downtrend.
The current market confluence suggests that we are in the Accumulation Phase B stage. Therefore, entering a buy position without further confirmation carries significant risk. A more prudent strategy would be to consider buying NASDAQ either by or after we move into Phase C of the schematic.
I am seeking a more favorable price point to initiate a sell position. It is important to note that several factors must align before taking a sell position above Buy Side Leg 4. This week, the market may experience an upward correction. I will wait for a reaction before considering any counter-trend buy positions. At the current price level, I am not inclined to sell due to a substantial invalidation point and an unfavorable risk-reward ratio. Once the invalidation point is established, I will evaluate potential slow corrections to inform a counter-trend buy decision.
The current market confluence suggests that we are in the Accumulation Phase B stage. Therefore, entering a buy position without further confirmation carries significant risk. A more prudent strategy would be to consider buying NASDAQ either by or after we move into Phase C of the schematic.
I am seeking a more favorable price point to initiate a sell position. It is important to note that several factors must align before taking a sell position above Buy Side Leg 4. This week, the market may experience an upward correction. I will wait for a reaction before considering any counter-trend buy positions. At the current price level, I am not inclined to sell due to a substantial invalidation point and an unfavorable risk-reward ratio. Once the invalidation point is established, I will evaluate potential slow corrections to inform a counter-trend buy decision.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.