Watch the NDX – Jan. 6, 2014, 1:30 pm

I just noticed something that I missed before, which is that during the late-December rally, the NASDAQ-100 (NDX) did not take out its high on Dec. 3. This is significant because the NDX has shown the best Elliott Wave patterns for the current bull market. As shown on the chart below, the Dec. 3 high could be considered the top of Primary 3, implying a subsequent correction of a magnitude similar to Primary 2 in 2011.

As I type this, the NDX is retesting its Dec. 17 low at 4089. If the NDX breaks 4060 with strong downside momentum, that would be a strong signal that a correction to 3400 has started.

NDX nov 2008 - jan 2015

Click the chart for a clearer image.

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