Stocks

NASDAQ100 May Face A Higher Degree Correction SoonJan 16, 2024

NASDAQ100 May Face A Higher Degree Correction from technical point of view and by Elliott wave theory.

The NASDAQ100 had a good run in 2023, thanks to the tech boom. Cryptos also bounced back strongly, closely following the market trend. Looking at the daily Nasdaq100 chart, we notice a clear upward trend with higher highs and swing lows. However, it’s important to remember that even in an uptrend, there can be retracements and corrective waves.

The chart shows that the recovery is not yet complete and is unfolding in five waves. Currently, we are in the fifth wave of three, approaching a resistance level. There might be a retracement, but ideally, it would be only wave four within the overall uptrend. A strong support level is around 16000, coinciding with the channel support. Another significant level is at 14000.

The future movements in the stock market will be influenced by the USD and the Federal Reserve’s policies on interest rates. Currently, expectations of lower rates and lower inflation are positive for stocks. However, if the Fed maintains higher rates for an extended period, stocks could consolidate for a longer time.

Alos it’s crucial to consider the possibility of a recession. If this one suddenly catches the Fed off guard this year, both interest rates and stocks may decline simultaneously. This scenario should not be ignored either.

NASDAQ100 May Face A Higher Degree Correction Soon NASDAQ100 Daily Chart
NASDAQ100 Daily Chart

For a detailed view and more analysis like this you may want to watch below our latest recording of a live webinar streamed on January 15th:

Become a member

Get daily Elliott Wave updates for some major Digital currencies, FIAT currency markets, major stock indexes, gold, silver, crude etc. or apply for unlimited access to the Elliot Wave educational videos.

ETF Approved With Bitcoin At Resistance. Check our free video analysis HERE.

DISCLAIMER

Any reviews, news, analysis, prices or other information contained on our website is provided as general market commentary and delivered electronically through a distribution channel to larger number of clients, therefore does not constitute investment advice or investment research. We are not trading advisors. Most of our work is for educational purposes only, with information based on Elliott Wave theory in real time. Trading forex, futures, options, stocks, cryptocurrenices or any another trading market carries a high level of risk, and may not be suitable for all investors.

The possibility exists that you could lose some or all of your initial investment; therefore you should not invest money that you cannot afford to lose. Our website and the information that we provide should not be relied upon as a substitute for extensive independent research before making your investment decisions. In no event will we be liable for any loss or damage on your account in connection with, the use of our products. For any real cash investments you have to contact your financial advisor.

Any information or material contained on our website is owned by Val Global d.o.o.. Reproduction is prohibited without Val Global d.o.o. prior license in writing.

By continuing to use the site, you agree to the use of cookies. Learn more.

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close