As the chart clearly mapped out, I am expecting that crash of Nasdaq (, S&P, and DJIA) to be inevitable.
Yesterday, Nasdaq has already broken down the trendline support, even though it rallied back the last 3 hours of trading, it didn't recover sufficiently to make it back up above the trendline. However, what can be seen (but not drawn) is a 5-wave completion of the move down. Meaning we might really have a small X'mas rally. However, if I am not wrong, X'mas rally will be short-lived (meaning it might rally at the start but close down tonight).
The potential of this trade is huge given that it could be either:
1. The 3rd of a 1st of a 3rd, or
2. The 3rd of a 3rd.
The 2nd case means that the crash will be massive in order to account for the short fall against the previous minor wave 1. The first scenario will see a more choppy move down and it will be a slower crash.
Yesterday, Nasdaq has already broken down the trendline support, even though it rallied back the last 3 hours of trading, it didn't recover sufficiently to make it back up above the trendline. However, what can be seen (but not drawn) is a 5-wave completion of the move down. Meaning we might really have a small X'mas rally. However, if I am not wrong, X'mas rally will be short-lived (meaning it might rally at the start but close down tonight).
The potential of this trade is huge given that it could be either:
1. The 3rd of a 1st of a 3rd, or
2. The 3rd of a 3rd.
The 2nd case means that the crash will be massive in order to account for the short fall against the previous minor wave 1. The first scenario will see a more choppy move down and it will be a slower crash.