Near-Term Pressure Down In NDX

The Nasdaq 100 (NDX) morning moved lower again and retested the lows that were struck last week but did manage to hold just over those lows. 

The inability to break directly lower is leaving the door open to this being a wave ((b)) lower of a 4 wave up rather that finishing off all of wave 5 down per the white path. 

If we do move directly higher, then we still have to watch the 7549-7869 zone for a potential resistance zone and look for a top near that region, giving us another low to finish off the larger degree pattern. 

If, on the other hand, we can move directly lower, then it would open the door to that next low being all of wave 5 of (C) of ((4)), at which point the upper resistance then becomes a key upside pivot that would open the door to a larger-degree bottom having been struck.  

If we are going to see that wave ((c)) to the upside under that purple count, then we should start the move with a full five waves up off of the lows. 

Unless and until that occurs, the near-term pressure will remain down, and this still may be targeting to get that lower low in a more direct manner. 

$NDX.X (2 hour)
$NDX.X (2 hour)
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.