NQ - has a very completed structure but we need it to confirm completion of the rally
We keep watching how price keeps climbing higher in the very last micro five wave up fractal in subwave -c- of wave -v- that should complete subwave ( c ) of wave ( iii ) up.
We should get five micro waves inside thatfinal subwave -c- highlighted with the yellow box.
The structure inside that yellow box looks completed with only one “but”.
I can count it having completed if I count a shallow flat consolidation as wave iv down.
And then subsequent push higher would be the very final micro micro wave v up.
The problem is wave iv should retrace at least 23.6% of preceding rally in wave iii up.
However, there is another rule of thumb saying that wave iv has to be confirmed by MACD testing the zero line.
NQ - 30 min chart updated at 8-45 AM on 12-20-2019
According to MACD that flat pullback we saw earlier this week may be counted as wave iv down!
In conclusion we have two alternatives, either the very last wave -v- has completed in all its micro details or it needs a pullback in a micro wave iv down followed by another push in a micro wave v up.
In any case we can not start talking about the scenario where the top of wave ( iii ) up is until at least that green trend line is broken!
I can only reiterate that all the checks like hitting extensions and completed structure and micro structure on lower time frames are only necessary conditions for calling the top. But sufficient condition for the top is breaking a strike of lower highs. The price has to break the low made by the previous pullback.
NQ - 30 min chart updated at 8-45 AM on 12-20-2019
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