Elliott Wave Analysis of the Nasdaq 100 (NQ futures contract) by Sid from EllliottWavePredictions.com. Click on the chart twice to enlarge.
The last 24 hours have brought further clarity to several of my equity and currency Elliott Wave counts. For instance, the NQ futures contract has now retraced almost exactly .618 of the clear, non-overlapping impulse down from late March though early June. The upward movement since June 6 is corrective, and is potentially complete, as all necessary subdivisions are in place. In addition, the MACD is showing early signs of divergence between the June 20 high and the July 3 high, and is doing so on intraday charts using candles as long as 360 minutes each, usually a very strong sign of impending reversal. Finally, the British Pound has broken to the downside in 5 waves overnight, and appears to be entering the most aggressive portion of wave 3 black, suggesting that a vigorous resumption of the trend toward US Dollar strength is near. By the way, my eventual downside target for the Pound is still about 3000 pips lower from here before the terminal thrust out of the 3+ year-long triangle is over.
The next two days certainly have some potential high-octane catalysts for a trend change in-store: The Bank of England and the ECB announce rate decisions at 7:00 and 7:45 tomorrow morning (EDT), and then Friday is the NFP employment report at 8:30 am. Put it all together, and we have the makings of an imminent strong downward move in equities.