Analyzing NASDAQ100: Navigating the Tech-Driven Surge, Impulsive Waves, and Market Dynamics in 2023

NASDAQ100 is bullish but Elliottwave pattern shows a potential pullback for start of the 2024.

The NASDAQ100 has exhibited a robust upward trend in 2023, propelled by the technology boom. Notably, the crypto market also experienced a notable recovery during the same period, showcasing a strong correlation.

Examining the daily chart of NASDAQ100 reveals a clear uptrend, characterized by higher highs and higher swing lows. While this trend is evident, it's essential to acknowledge the possibility of retracements and corrective waves within the overall impulsive sequence.

The current scenario on the NASDAQ100 chart indicates that the recovery is still unfolding, manifesting in five waves. Specifically, the fifth wave of three is approaching a resistance point, suggesting a potential for retracement.

However, the anticipation is for this retracement to be part of the overall uptrend, ideally representing only wave four. Notably, a key support level is identified at 16000, coinciding with the channel support. Another crucial level, albeit lower, is situated at 14000.

The future movements of the stock market are contingent upon the USD and the Federal Reserve's (FED) policy on interest rates. Presently, the prospect of lower rates because of decreased inflation is viewed as bullish for stocks.

However, if the FED maintains higher rates for an extended period, stocks may undergo a more prolonged consolidation than anticipated. Additionally, it's imperative to consider the impact of a potential recession.

If such an economic downturn catches FED officials off guard this year, both interest rates and stocks could experience a simultaneous decline. Thus, this scenario should not be dismissed, warranting careful consideration in market analysis.

Trade well,

Grega

https://twitter.com/GregaHorvatFX

Love the Elliott Waves analysis? Visit www.wavetraders.com for more analysis.