Not necessarily another 500 points, but below 2120 the likely targets will then be retrace points of the entire move up from the 1620 lows as outlined in the previous post. In fact, my current favored scenario is that we will not see new lows just yet, but rather a retrace to one of these levels in wave B and then a move to new highs in wave C up (assuming and ABC correction rather than waves 1-2-3 of a new bull), possibly in the 2500-2600 area.
In fact, in an ABC zigzag correction, wave A is often = wave C. If 2230 holds, then wave A = 610 points. Using the previously stated potential retrace points of about 2000 or 1925 in the Nasdaq, wave C would then have a target of about 2535-2610. The very last gap left open above is right around 2530, thus even if we only get a 38% retrace, the minimum upside targets would also fulfill gap closing requirements.
Damn that fibonacci stuff is good. |
