The selloff today on the Nasdaq and overall market due to Carl Icahn’s comment about not holding any Apple shares anymore really put the markets into what felt like capitulation.
At least for the Nasdaq, which has fallen multiple days in a row — I do see 5 waves into support at 4350 and shape-wise it looks like a wave 2 drop.
It is possible for this to extend further down, but strong earnings from Amazon seems to have given the Nasdaq a decent pop right at the close.
Nasdasq reacted strongly from 4350 support.
Apple earnings gave us wave 3 down. Then Facebook guve wave a up, then Bank of Japan news gave wave b down, then during day, we got wave c — only to get hit with Carl Icahn’s comments and we get 5th wave down into support at 4350.
S&P reacted strongly from support at 2065.
I should know from preivous times — when I expect 2065, but we only get 2071 — then usually that means we will revisit 2065 sometime after a bounce. Exactly how is what I never get right.
The russell reacted strongly from support at 1135 — which was the bottom of wave 2.
I very well could be wrong about these support regions – but I thought all these coincidences should be worth pointing out.