Wednesday, December 8, 2010
NQ daily Chart
From July 2010 Low, NQ is now on its wave 5 up, so far it has completed sub-wave (iii) of 5 (see chart). Although wave 5 should have 5 sub-waves, I have seen many wave 5 patterns with only 3 sub-waves, so caution is warranted here when looking for wave (v) of 5.
Once wave 5 up is completed, we would look for price to decline in an ABC-zig zag wave pattern to re-test the breakout level at around 2050 area. Upon successful re-test, I would be looking for NQ to rally into March 2011 top.
2011 should be the top of this current bull market. Once the top of this bull market is in, the vicious bear market should resume and bottom sometime in March 2012.
Once wave 5 up is completed, we would look for price to decline in an ABC-zig zag wave pattern to re-test the breakout level at around 2050 area. Upon successful re-test, I would be looking for NQ to rally into March 2011 top.
2011 should be the top of this current bull market. Once the top of this bull market is in, the vicious bear market should resume and bottom sometime in March 2012.