OMICRON And The Markets, NASDAQ Builds Massive Reversal-Pattern!Hello,
Welcome to this analysis about the stock-market-index NASDAQ and the 2-day timeframe perspectives. When considering the stock market overall and the current developments it has to be remarked that we are in a precarious situation as the real economy is still damaged by the corona pandemic which began last year, while the stock market recovered exceptionally and in a fast pace there are still many businesses suffering from the crisis and when looking at the current dynamic we can watch that with the upcoming omicron variant of the coronavirus it should not be underestimated that a dramatic increase of pandemic activity can also lead to shacky grounds in the stock market setting up for a much bigger bearish pullback. We also see accelerating inflation which in fact is a result of the huge amounts of money printed over the route of last year 2021 in which the money stock increased exponentially this gave fuel for this increasing inflation and therefore when it goes on like this the inflation can increase further, all these factors should not be kept by the side and as when looking at my chart we can watch there how the NASDAQ Index is building this main ascending-wedge-formation with the coherent wave-count within the formation and the waves A to D already completed, now with the last wave-E remaining this is likely to finalize the whole wave-count and move into the upper resistance-cluster from where a pullback to the downside will be highly possible, when this pullback sets up and the index moves below the lower-boundary it will be the confirmation of this whole ascending-wedge and the index will move on further to the downside to reach out the target-zones from where the dynamic needs to be elevated again, if the index forms a new bear-flag in this zone a bearish continuation is also possible.
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"The high destiny of the market is to explicate, rather than to speculate."
Information provided is only educational and should not be used to take action in the markets.