Embarking on Long-term Predictions: Unraveling the Mysteries of NASDAQ, SP 500, DXY, Bitcoin, and Ethereum
The Investor’s Compass #13: Decoding the Complexities of Market Trajectories for Superior Investment Decisions
Original Article: https://open.substack.com/pub/chartscope/p/embarking-on-long-term-predictions?r=1gn5e3&utm_campaign=post&utm_medium=web
As we progress in our investment journey, we sometimes need to turn our gaze from the immediate horizon and set our sights on distant landscapes. This week, we venture into a realm often overlooked but equally important long-term projections. Following an uplift in market sentiment driven by positive CPI news, many bearishly inclined investors have found themselves cornered, among them, the renowned “Big Short” protagonist, Michael Burry. The old adage rings true: the crowd is rarely right. With sentiment at rock bottom, the chances of another significant downturn or a Black Swan event seem slim.
NASDAQ: Bullish Horizons
The NASDAQ has broken free from the fetters of the falling channel, surging northward in a powerfully bullish stride. This development effectively nullifies the bearish scenario. A comprehensive long-term analysis reveals an ongoing upward 3rd Elliot impulse wave, with a clear “Cup & Handle” pattern underscoring bullish prospects. Drawing a trendline from the 2007 peak, we anticipate a long-term high ranging from 20,000 to 25,000 aligning with the overarching 5th Elliot wave. This could span until the Federal Reserve announces its first interest rate cut, potentially by July 2024.
Cracking SP500
Mirroring the NASDAQ in terms of Elliot wave count, the SP500 also showcases a bullish “Cup & Handle” pattern. Expected peak targets hover around the 5,500–6,500 point mark. The SP500 has recently broken free from a ‘Falling Wedge’ pattern signaling upward momentum.
Navigating DXY
The DXY continues its steady downward progression, accompanied by a rising trendline initiated in 2008. A target range of 94–98 is drawn after examining the broad ABC correction that ensued post the 5-wave Elliot structure. A significant concern post-ABC correction is the anticipated surge in upward impulse waves, hinting at possible future inflation.
Bitcoin: Anticipating Peaks
Bitcoin is doing Bitcoin things and is also in the same count as the NASDAQ and SP500. Bitcoin is currently looking for its close in the third wave move. This could go up to $43000. As long as BTC has not reached a new ATH, $48k-52k is the first target in the context of the stock market. In the event of a break, the maximum values are in the 6-digit range. Since we are realists, we have to be cautious here and wait for further signals and values to refine the big pattern.
Ethereum Flashing Signs of Strength
Ethereum, showing uncharacteristic strength, is driving altcoins and our bullish portfolio. Currently trapped in a spearhead pattern, Ethereum targets the $4,000 range post-breakout. A max bull scenario could see Ethereum nudged toward $9,000-$11,000. All estimates will be refined upon reaching wave 3, allowing for more precise future projections.
In conclusion, we’re looking at an investment landscape presenting bullish scenarios for NASDAQ, SP500, Bitcoin, and Ethereum while observing a measured descent for the DXY. Seeing beyond immediate market fluctuations and focusing on long-term trends is the hallmark of wise investors. This guide is a valuable ally in your journey towards investment mastery, providing accurate, easy-to-understand analyses that both beginners and experienced investors can leverage to enhance their investment outcomes.
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Please Note
We are committed to providing accurate and timely market insights. However, this information is purely for your guidance and should not be interpreted as financial advice. Always exercise comprehensive judgment when analyzing key indicators, chart formations, and potential trends. Staying informed and cautious is positive reinforcement if not financial advice. Stay tuned for more comprehensive market insights and analyses, and always remember — to trade wisely!
