You must be wondering whether the QQQQ has posted a major bottom at $25.05. This post will help you make that decision. Users of Elliot wave principle are presented with some of their greatest difficulties when trying to determine whether a major trend has ended. We know that the level where the old trend ends is where a new trend begins, but identifying whether a rally is the first wave of a new uptrend is a tough call. A very useful approach to address this challenge is to identify the point which looks like the 4th wave of the last leg of the just finished major downtrend. (In the QQQQ, this point is 30.46). When the price movement from the perceived bottom exceeds the prior 4th wave (30.46), start counting the price movement. If a minor 5 wave count can be made now, we have probably seen the start of a new major five-wave trend. Once we establish this, we will look to buy a 50% retracement and place stops below the major bottom. To sum up, we have to wait for QQQQ to reach 30.46 before we can speak more confidently. Unfortunately, there seems to be some tough resistance even at 29.50 now. A break past 29.50 today will be a very encouraging sign. Here are two charts for you to study. It might be to your advantage to print out both and observe what the market does over the next few sessions. Good luck! Ramki
Has QQQQ posted a major bottom?
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