Nasdaq Complex Combination Correction

An Elliott Wave combination correction is a complex corrective pattern in Elliott Wave Theory, typically formed when simpler corrective patterns combine to create a larger, more intricate structure. It consists of two or three corrective waves labeled W, X, Y.

Combination corrections aim to extend and complicate the corrective phase, often seen in sideways or consolidative price action. They provide a way for markets to consume time and create balance before resuming the primary trend.

Key Characteristics:

The larger trend of the correction labelled as W,X,Y consists of 3 corrective wave structures being 2 Zig Zags, and and ending symmetrical triangle labeled A,B,C,D,E.

Each major corrective structure ends with a 3 wave impulse move to the downside, followed by a 2 wave corrective structure before resuming the trend.

You can see more detail on EW theory related to elliot wave combination structures on the website: elliottwave.com/waveopedia/combinations/

What catches my attention for this up coming week is a potential end to the corrective structure on the NQ (Nasdaq Futures), as the compression in price may see a final bounce at "E" for the breakout back towards the ATH.

Only time will tell

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Where I would be looking to take profits, and potentially short back down for the E wave. Clear ABC corrective structure forming here. The 1-1 Trend fib extension is giving us an idea where price may reverse.

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Coming into resistance here

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Prepping my hedges up to the 1-1 extension

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I am also aware of a potential reversal around the 0.618 in confluence with the triangle. If the anchored vwap curls into that zone, it would be another nice plus.

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Furthermore, a daily level at 21,200 from the previous weekend gap down

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Currently trading at the triangle downtrend resistance, with the daily level right above

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Perfect 1-1 , short trade has been taken

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Looking good so far

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Market trying to shakeout some participants who shorted the low , hoping for a gap down all the way into point E. I can see the volume on this move up is extremely low. Still looking for a drop before this correction ends.

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Market pulling back in the morning. Lets see how the day plays out. Any further touches on the triangle trendline would likely be more a sign of strength at this point, and I likely wont be looking to short a 3rd touch.

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Coming right into resistance with an immediate rejection after losing the daily open. Still looking towards the lower pivot E

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CPI Sell Off

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Also will be aware of the 618 at the triangle trendline, breaking below I will be watching the daily level.

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Markets starting to show strength and I will start building my positions at these low price. If we get the further drop I will add more shares!

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Anchored VWAP of this uptrend showing us support at the HL2 average price. I have a higher reason to believe this might be the low and we see a market reversal from here. If it does happen to drop again, I would look to add to positions.