If you have followed our updates, yesterday’s volatility aligned with our expectations.
Understand the markets just don’t go up forever, they have pullbacks, and this is a pullback we estimated.
We have the August time factor starting today and running through to August 8. I’ll be using this time to add if we get further weakness.
Here is Invesco QQQ Trust (QQQ):
We have a positive RSI reversal, which is a strong bullish indicator. This could run for a bit longer, so continue to wait before adding. I want to let the market sell off, then swoop in with our purchases.
Here is VanEck Semiconductor Fund (SMH):
We still have the same lines we drew two weeks ago. I’ve added the B and C waves marked in red. But as you can see, the blue projected stock chart line from two weeks ago was almost a perfect stock path.
This is why I love Elliott Wave so much, it is one of the highest probability technical analysis tools out there, which predicts not only direction but when markets are likely to turn around.
I have also added our Gann time factors with the red vertical lines.
We’re seeing a bit of a recovery today in semiconductors, but further volatility is a definite possibility which may last into the start of next week. Keep in mind, this is still a bull market, and I plan on buying on further weakness.