Over the past weeks we've shown that the NASDAQ would reach $5100 and then $5400 (see here and here). This week the NASDAQ closed right at $5100. Thus, no real surprise to us, while many other market pundits keep ringing the alarm bell.
So is $5400 still attainable? In our humble opinion: yes. The weekly NASDAQ chart below shows our A.I buy/sell indicator TI directly under price, and it remains on buy (aka long; green arrow). The other TI below price is the On Balance Volume indicator (OBV) and it also shows that volume is tracking price higher.
Since volume often foretells a next move (e.g. decreasing volume on higher prices signals often buyers exhaustion) it tells us money keeps being put to work; liquidity is good. The only fly in the ointment is that price closed outside the upper bollinger band. That by itself shows price has strength longer term, but may need to back off a bit shorter term.
This fits with the Elliot Wave count we are tracking suggesting the market is close to putting in a 3rd of a 3rd wave top and will then retrace a few percentage points before heading higher.
