Monday, December 20, 2010

Nasdaq NQ Daily Chart

On a daily chart, Nasdaq is currently in a mature phase of wave 5 of 5 from its July 2010 swing low. The current wave 5 uptrend may want to continue on into January 2011 before topping, but it can top and reverse down at anytime now.

I will be looking for a wide-range bearish candle for a sign that the top may be in place. Once the top is in, I will be looking for a larger ABC correction that can take price down to breakout level (per chart) before rallying back up to test the high or higher high I think would occur sometime in March 2011.