Nasdaq - Panic Over and Time to Get Discounts?

2022年5月12日

With nearly 30% fall in Nasdaq, similar slaughter of tech stocks that we observed in March 2020, so is panic sell off over and is it time to buy stocks with strong fundamentals?

Fundamental indicators:

• US Consumer Confidence - bounced from the low of March 2022 but still at the lowest levels since 2011
  
• US Consumer Credit- at the highest since 2011, a positive sign, however, this can also be accredited to sharp rise in costs, hence people are spending more and getting less in return
  
• US Industrial Production - also at its historic peak
  
• US Jobless Claims - dropped to pre-pandemic levels
  
• Nasdaq P/E - at 20.9x ratio, lower than in March 2020
  

Technical Analysis (Elliott Waves):

• The sharp drop in March 2020 has completed a Running Flat correction that lasted for more than a year and a half
  
• Since then there was initially an explosive growth which has started slowing down from September 2020 - this is a sign that there is not enough bull power to complete an Impulse and Ending Diagonal is developing instead with 3-3-3-3-3 structure
  
• It is likely that wave 3 formed by a zigzag peaked in November 2021 and now wave 4 is developing which has already intruded into the territory of wave 1 and is nearly 0.786 of wave 3 using Fibonacci retracement
  
• Given all the above it is likely that wave 4 will find support above $10680 price level of wave 2 and will start the final bull run in the shape of another zigzag
  

What do you think about the prospects of Nasdaq and US market as a whole?

Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.

Thanks