gem-x's Elliott Wave Forecast: Feb 21 02
Today, the NASDAQ dropped to 1729/1730, around the .500/.618 which was just 9 points from my zigzag target....the volume was strong, and closed at the high....the candlestick was pretty bullish, a hammer with a small white body. This is 2/3 of the way through a morning star reversal....morning star reversals have occured at the bottom in September, as well as March 2001, and in Oct 1998. We've seen a candlestick like this the day of the fed meeting, and it failed miserably to complete. And to halt this downtrend, the confirmation MUST occur. A morning star usually occurs near a "potential bottom", and is described as a big red candle on the first day, a white hammer candle with a long tail/small body, and the next day, which is the most important part of the fomation, is the large white candle on a strong volume upmove....for a the start of a "Wave 3" rally, this move
The put/call ratio on the 10 day and 21 day MA's are still very bullish...the 10 day sits at .88 and the 21 day MA is at .81., and there's bullish divergences on the MACD and RSI....they both failed to make lower lows on the NASDAQ. The volume on the NASDAQ was around 1.92 billion shares, which was fairly strong, but on the QQQ's we haven't seen this much volume in a day since the beginning of December. The Fast Stochastic is still at oversold levels, at around 30...just about all the indicators show oversold levels...
...but like I said three or four times....there MUST be a high volume, rally with a big white candle to complete the "potential" morning star reversal.
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