February 1, 2022

NASDAQ 100 / Elliott Wave Update 1/31/2022 by Michael Filighera

Monday’s trade continued to pull out the stops to the upside.  The volatility remained strong as did the buyers.  The NQ held support at 14410 during the Globex session and broke resistance at 14585 early in the U.S. session.  As I discussed the break above the hourly 200 MA at 14566 brought a strong round of acceleration that took the market up above 14585.  The NQ continued higher with the MA’s lining up to guide trade to next resistance at 14857, which is also the end point for the previous 4th wave of one lesser degree.  A common completion point for an active 4th wave.  While the NQ did pop above 14900 reaching 14915 before settling back at 14857.  I discuss on tonight’s update the current count and the alternates scenarios for both the upside and downside.  The “no break zone” remains at 15152 for now.  A break above that level would bring about a relabeling and the strong possibility that the Intermediate 4th wave is complete and finished with a failure.  For tomorrow trade smart – don’t fight the upside or downside – stay in line with what the market is telling us.  As long as the volatility remains high trading should remain solid with more opportunities and profitable trades.