Bottoming Levels to Watch In Nasdaq

The Nasdaq 100 moved much deeper on the retrace and may be attempting a double bottom here or even another lower low which I could count as the bottom of the wave c of 5 of c fo (4).  We would need to break over the 12894 level on the NQ chart followed by a break over the 13337 level. 

If we are able to break over the 12894 level but not the 13337 level and then move lower, I would count the push up as part of the yellow wave b with this still needing another lower low before finding that ultimate bottom. 

If we push directly lower without moving over the 12894 level first, then I would count this move as part of an extension of the green wave c and would watch the 11868 level as the next key support below as this is the 100ext of the green wave b. 

Again, once this does bottom we should see a very strong reversal back higher as I am counting the entire move down off of the March highs as a larger diagonal for the wave (C) of (4). 

NQ  20m
NQ 20m
Michael Golembesky is a senior analyst at ElliottWaveTrader covering US Indices, the US Dollar, and the VIX. He contributes frequently to Avi's Market Alerts service at EWT while also hosting his own VIX Trading service.