Elliott Wave view for Nasdaq suggests that the rally from Intermediate wave (4) on 12/5 unfolded as a double three Elliott Wave structure where Minor wave W ended at 6545.75 and Minor wave X ended at 6383.25. The Index has made a new high above Minor wave W at 6545.75, which brings validity to this view. Subdivision of Minor wave W unfolded as a double three Elliott Wave structure where Minute wave ((w)) ended at 6427.75, Minute wave ((x)) ended at 6383, and Minute wave ((y)) of W ended at 6545.75.
The Index then pullback in Minor wave X with subdivision of a triple three Elliott Wave structure where Minute wave ((w)) ended at 6463.25, Minute wave ((x)) ended at 6520.75, Minute wave ((y)) ended at 6432.25, and second Minute wave ((x)) of X ended at 6383.25. Near term, rally from 12/30 low (6383.25) looks impulsive and could see more upside to end 5 waves up in Minute wave ((a)). Afterwards, the Index should pullback in Minute wave ((b)) in 3, 7, or 11 swing to correct cycle from 12/30 low (6383.25) before the rally resumes. We don’t like selling the Index and while dips stay above 6383.25, and more importantly above 6232.30, expect Index to extend higher.