Unlike the S&P, which made a more traditional 3-wave decline (so far), the Nasdaq did something very strange. Like the S&P, it, too, can arguably be said to have formed a leading diagonal yesterday (the little orange “1”; it looks a little wonky there, but is better-defined on the cash session with the first high of this morning). However, it’s “3-wave move” went first lower than higher then lower. And up there at this morning’s high, there looks to be a triangle up there. Very odd to see a triangle at “a high.”
If it is a triangle, it can only be a “B-wave” or a “4th wave.” And it’s clearly no 4. So: it’s possible that the Nasdaq has completed a 3-wave “expanded flat” pullback. Following a leading diagonal, I would also generally want to interpret this as a “1-2.”
I could be completely wrong (hence my decision to hedge), but I don’t yet find any of this too threatening.