🚨 Nasdaq 100: Brace Yourself for Impact!
Was this downturn predictable all along?
📊 Nasdaq-100 Index (NDX) – Profile Overview
✅ What it is:
The Nasdaq-100 is a stock market index that includes 100 of the largest non-financial companies listed on the Nasdaq Stock Exchange. It's heavily weighted toward technology and innovation-driven businesses.
✅ Key Characteristics:
Tech-Dominated: Includes giants like Apple, Microsoft, Amazon, NVIDIA, and Meta.
Market Cap Weighted: Larger companies have greater influence on the index's performance.
Excludes Financials: Unlike the S&P 500, the Nasdaq-100 excludes banks and financial stocks.
✅ Why It Matters:
The Nasdaq-100 is a leading indicator of growth stocks and market risk appetite. It reflects investor sentiment toward the tech sector and high-valuation companies. It's also highly sensitive to interest rate expectations and macroeconomic shifts.
✅ Volatility:
More volatile than broader indices like the S&P 500 due to its concentration in high-growth sectors.
✅ ETFs That Track It:
QQQ (Invesco QQQ Trust) – the most popular ETF tracking the Nasdaq-100.
QQQM – a newer, lower-cost version of QQQ.
Technical Analysis
📉 Conclusion:
The Nasdaq-100 may have just completed Wave 5 in November last year, marking the end of a major market cycle according to Elliott Wave theory. Historically, the completion of Wave 5 signals that a deep corrective phase is imminent — typically an ABC correction that can retrace a significant portion of the previous uptrend.
This isn’t just a pause — it’s potentially the start of a structural reset before the next long-term cycle begins. For investors, this is a moment to reduce exposure, protect capital, and stay patient as the market works through a much-needed reset.
Wishing you profitable decisions,
The Symphony of Stock Picking