NASDAQ could drop down to nearly 5000
Updated
NASDAQ chart is providing many indications of a major correction in the near future.
NASDAQ has been moving up in the purple channel since 2002. It crashed by 76% after it tried to touch the top of this channel in 2007. Now again NASDAQ has touched the top of this channel- only the second time in 16 years - tried to move above it but has since returned back to the channel. If it is an indication that the third cyclic Elliott wave is complete, then NASDAQ is likely to drop by 38% in the fourth wave, i.e. going down to nearly 5000 in the next six months or so.
Further, the green channel shown in the daily chart below was formed after the correction in Feb- March this year. NASDAQ has touched the bottom of this channel four times - in April, June, July and August - but has never crossed below it - its bottom has always acted as support. However, in the drop in the last week, NASDAQ not only dropped below the bottom of the green channel, but also tried to move back up in the green channel and failed. This is a bad sign further supporting the above hypothesis of a substantial correction in the coming months.
However, the yellow channel formed after the correction in 2016 is still intact (see the weekly chart below) and NASDAQ could move back up after touching the bottom of this channel as it has done a few times before. Breakage of this channel will further substantiate the theory of a major correction.
Anyway, just my two cents worth!
PS: This analysis is just for educational purposes and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
Cheers
ND
NASDAQ has been moving up in the purple channel since 2002. It crashed by 76% after it tried to touch the top of this channel in 2007. Now again NASDAQ has touched the top of this channel- only the second time in 16 years - tried to move above it but has since returned back to the channel. If it is an indication that the third cyclic Elliott wave is complete, then NASDAQ is likely to drop by 38% in the fourth wave, i.e. going down to nearly 5000 in the next six months or so.
Further, the green channel shown in the daily chart below was formed after the correction in Feb- March this year. NASDAQ has touched the bottom of this channel four times - in April, June, July and August - but has never crossed below it - its bottom has always acted as support. However, in the drop in the last week, NASDAQ not only dropped below the bottom of the green channel, but also tried to move back up in the green channel and failed. This is a bad sign further supporting the above hypothesis of a substantial correction in the coming months.
However, the yellow channel formed after the correction in 2016 is still intact (see the weekly chart below) and NASDAQ could move back up after touching the bottom of this channel as it has done a few times before. Breakage of this channel will further substantiate the theory of a major correction.
Anyway, just my two cents worth!
PS: This analysis is just for educational purposes and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
Cheers
ND
Note
Weekly chart Note
Daily chart:Note
Forgot to mention that the charts on the log scale.Note
I didn't add the red channel formed since 2009 in the above chart (see below) but its top is also coinciding with the top of the purple channel. 
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