NASDAQ/US100 - ABC WAVE - UPDATE
Updated
A month ago I made a call that NASDAQ would continue to correct through an ABC wave (see related ideas)
So far its playing out so I decided to give it a little more attention, with additional situations for consideration. Patterns could be wider or thinner than anticipated depending on news, fear & volatility.
Bullish scenario: Inverse H&S
Diverging from the initial ABC wave I plotted last month, should the impact of the current political turmoil pertaining to Russia deescalate, we could see an inverse head and shoulders.
Bearish scenario: Macro ABC correction
Should the political turmoil continue, or general market fears as people try to find a safe asset to allocate to such as metals, healthcare stocks, weapons manufacturing, we could see a continuation of my initial ABC wave, although I have tightened it up slightly to account for the obvious volatility in global markets.
Crypto: Decoupling opportunity
Currently US100 price action is also DIRECTLY influencing BTC.
If BTC ever needed a shining moment to decouple from US100 in a dramatic manner, it would be for it to follow the bullish inverse H&S pattern, whilst US100 follows a the deeper ABC corrective wave. This would drag every other crypto up along with it.
Alternatively it would be an excellent moment for
ETH to shine and initiate the coveted flippening.
However, if BTC or ETH fails to follow the inverse H&S pattern, they will likely be dragged down with US100 on the macro ABC roller coaster.
War escalation scenario:
There's a possibility stocks could straight up tumble all the way down to the lowest trend floor. The red, yellow, and green boxes indicate areas with liquidity where I would theoretically DCA.
If the price reaches such lows of 8k it will call into question the current economic model. If there was a time for a Great Reset, or for a global movement to be rid of monetary finance altogether, this would be it.
It will either be the greatest buying opportunity in history, or the end of traditional finance as we know it.
If a war is nuclear? Well you'll be lucky to have electricity to trade with.
Nobody wins.
As always, I could be completely wrong with all of these ideas.
So far its playing out so I decided to give it a little more attention, with additional situations for consideration. Patterns could be wider or thinner than anticipated depending on news, fear & volatility.
Bullish scenario: Inverse H&S
Diverging from the initial ABC wave I plotted last month, should the impact of the current political turmoil pertaining to Russia deescalate, we could see an inverse head and shoulders.
Bearish scenario: Macro ABC correction
Should the political turmoil continue, or general market fears as people try to find a safe asset to allocate to such as metals, healthcare stocks, weapons manufacturing, we could see a continuation of my initial ABC wave, although I have tightened it up slightly to account for the obvious volatility in global markets.
Crypto: Decoupling opportunity
Currently US100 price action is also DIRECTLY influencing BTC.
If BTC ever needed a shining moment to decouple from US100 in a dramatic manner, it would be for it to follow the bullish inverse H&S pattern, whilst US100 follows a the deeper ABC corrective wave. This would drag every other crypto up along with it.
Alternatively it would be an excellent moment for
ETH to shine and initiate the coveted flippening.However, if BTC or ETH fails to follow the inverse H&S pattern, they will likely be dragged down with US100 on the macro ABC roller coaster.
War escalation scenario:
There's a possibility stocks could straight up tumble all the way down to the lowest trend floor. The red, yellow, and green boxes indicate areas with liquidity where I would theoretically DCA.
If the price reaches such lows of 8k it will call into question the current economic model. If there was a time for a Great Reset, or for a global movement to be rid of monetary finance altogether, this would be it.
It will either be the greatest buying opportunity in history, or the end of traditional finance as we know it.
If a war is nuclear? Well you'll be lucky to have electricity to trade with.
Nobody wins.
As always, I could be completely wrong with all of these ideas.
Note
Not 100% accurate, but I think I score a few crystal ball points for this one 🔮
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