VIEW RETAINED FOR A HEALTHY CORRECTION WITHIN A LARGER BULL TREND
The NASDAQ index has a similar technical profile to the S&P500 index and the illustrated view remains valid.
The expected bearish correction off R1 is well underway with an eventual target around SA1*.
The grey a,b,c interim formation illustrates a possible R0*/S0 consolidation before the final downside towards SA1*, but the downside could take on many different forms.
The current downside is most likely a phase 4 correction as part of the 1,2,3,4,5 bull trend to T1 and T2.
Holding above S0* will keep the overall bullish outlook valid, as illustrated.
A breach off S0* would require a reassessment of the view.
The pivotal resistance can now be lowered to R0*. Breaking this level will favour the completion of the bearish correction.
Conviction: Medium
