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Nasdaq is trading clearly bullish since 2016, unfolding a bigger five wave impulse to the upside. A recent sharp and strong move was labeled as red wave III, known as the strongest and steepest wave followed by a corrective wave IV. That said looking at the lower time frame chart we can say that this corrective wave IV can be ending. We may see a bigger three wave reversal that took place away from the 5897 level and took the structure of a basic A-B-C correction. Ideally final stages of wave C were signs of an ending diagonal in action, which can now explain the intra-day rally from the lows. Hopefully this higher degree correction fully unfolded and is now pointing towards new gains.

Nasdaq, Daily

Nasdaq, 1H