NQ has topped but the cash index may need one more higher high
Here I want to show several highly correlated instruments with slightly different wave counts. If we look at Nasdaq Composite chart below we can see that this move down is a temporary pullback that my be followed by another final push higher.
Nasdaq Composite - 240 min chart updated at 2-11 Pm on 2-18-2020
The relevant ETF QQQhas a very similar count. It argues for another push lower. But in this case the structure of wave ( iii ) up does not look complete.
QQQ - 10 min chart updated at 2-10 PM on 2-18-2020
However, if we look at NQ chart (below) we can get a fully complete structure of the rally in wave ( iii ) up. Microwise it also argues for another push higher in subwave c down.
This chart still argues for continuation lower in subwave c down targeting at least 123.6% ext at 9.465. That difference in counts is explained by the fact that NQ is futures traded overnight while QQQs is ETF traded during regular and extended hours but not overnight.
If we get another leg down early this week we can try to go long. Because under more bullish counts of QQQ and COMPX another push to a higher high may come. And even the more bearish count of NQ also argues for a bullish pullback in wave -b- up after the first a-b-c- push down.
NQ - 15 min chart updated at 2-10 PM on 2-18-2020
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