Friday, July 19, 2013
MTU Weekly Ed. - A look at NDX (7/19/13)
Short term update on SP500
A look at NDX
The following analysis assumes that the bear market dating back to the Y2K peak in NDX is still in progress. The analysis is motivated by the observation that wave structures of the proposed counter-trend rebound are largely complete on the monthly, weekly and daily scale.
the larger structure (monthly and week charts)
The monthly chart of NDX (Chart 2) shows the larger degree wave structure since the Y2K high. Following a crash into the 2002 low, a three wave (zigzag- or flat-like structure) counter-trend rebound has been developing. [Note that the bullish alternative count labels the 2008 low as the prior bear market low.]
Wave (5) of [Y]b started at the 2010 low. As the weekly chart (Chart 3) shows, NDX is likely in wave 5 of (5).
final touches (daily chart)
Chart 4 counts the proposed wave 5 of (5) on the daily scale, in two ways.
The blue count is an ending diagonal triangle. This scenario could accommodate one more overthrow, probably following a retrace first.