Monday, January 4, 2010

Nasdaq ~ Elliott Wave Update 4 January 2010

The Nasdaq opened near the December highs and continued to rally. Around lunch time it made a new rally high at 2311 and then went sideways for the rest of the day.

Including today 9 of the last 10 Mondays were up days (and most of them gapped up). So it was actually the perfect setup for the start of wave [v].

For the next days I expect the market to continue to rally towards 2340 possibly along the middle trendline and then peak on Thursday or Friday.

A first sign that the market has topped will be a drop below the wave [iv] low (2269).