Welcome to Extreme Investor Network, where we provide unique and valuable insights into the stock market, trading strategies, and Wall Street trends. Today, we will be analyzing the NDX daily chart with a detailed EWP count and technical indicators.
As we look at the recent market movements, we can see that the bears were only able to push the index below the first warning level of $19,620 before the NDX Bulls took control and pushed the index up to almost $20,500. This has led us to update our EWP count and anticipate the index to be in the green W-3, 4, and 5 sequence for the red W-v of the black W-5.
So, what are the next target zones and warning levels to watch out for? Ideally, we expect the green W-3 to top around the 161.8% Fibonacci extension ($20,450+/-50), with the green W-4 bottoming around the 100.0% Fib-extension ($20,110+/-50), followed by the last green W-5 reaching ideally the 200.0% extension at $20,665+/-50. This pattern is likely to unfold over the next 2-3 trading weeks.
As the market continues to evolve, it is crucial to keep an eye on the warning levels for the Bulls, which continue to rise. The first warning level is set at $20,200, followed by the second at $20,000, and so on. However, a break below $19,470, the red 4th warning level, will shift the chart from Bullish to Bearish. It’s important to pay attention to these warning levels to stay ahead of potential market shifts.
One key indicator to watch for is negative divergence, where the index’s price is rising while the technical indicators are not. This can serve as a cautionary signal and may indicate a potential reversal in the markets. By analyzing divergence patterns, we can better understand market movements and make informed trading decisions.
At Extreme Investor Network, we aim to provide you with in-depth analysis and unique insights into the stock market to help you navigate the ever-changing landscape of Wall Street. Stay tuned for more updates and expert commentary on market trends and trading strategies.