Welcome to Extreme Investor Network! Today we are diving into the world of the Stock Market, specifically focusing on the NDX daily chart and technical indicators.
In a recent analysis, we noticed that the NDX index reached its peak just a day after our update, hitting $18097 right within the target zone we had predicted. It then dropped to $18189 on May 31, closing the day at $18536, aligning perfectly with our projection for a potential W-4. The bears made an attempt to push the index below the warning level we had set at $18,400, but the Bulls quickly regained control, driving the index up to nearly $20,000.
So, when will the bears have another chance to make a move? Before we can answer that, let’s look at the current state of the market and chart using various objective parameters:
1. All Technical Indicators (RSI5, MACD, CMF) are signaling a buy, pointing upwards with green dotted arrows.
2. Despite being overbought, there are no negative divergences, indicating a strong market.
3. Price is above the rising Ichimoku cloud and daily Simple Moving Averages, stacked bullishly with price > 10d > 20d > 50d > 200d SMAs.
4. The warning levels for the Bulls continue to rise, with the first level at $19620 and subsequent levels at $19500, etc.
With this information in mind, we are maintaining a Bullish outlook for the NDX index until proven otherwise. As long as the index stays above $19,100, we anticipate it completing the stages of W-iii, iv, and v. The target zones for the waves are subject to change but currently set at $20,100+/-50, $19,600+/-100, $21,000+/-500, $19,200+/-200, and $25,000.
Only a break below $18,400, the 4th warning level, will switch the chart from Bullish to Bearish, but we will keep a watchful eye on the earlier warning signs to stay cautious.
Stay tuned to Extreme Investor Network for more insights and updates on the Stock Market and trading trends!