In my last update, I mentioned the POSSIBLE completion of correction at wave ‘Z’. I had also marked this point as wave IV and the likelihood of wave V commencing upwards.
The markets since then have moved within a parallel channel. Eventually, all likelihood for the NASDAQ to touch the upper boundary of the channel as shown above.
PARALLEL CHANNEL WITH OVERLAPPING
In some cases, the waves within the parallel channel may overlap, meaning that one wave may move beyond the end of the previous wave. This is not uncommon in Elliott Wave analysis, and it can occur in both IMPULSIVE AND CORRECTIVE WAVES.
One way to approach overlapping waves within a parallel channel is to focus on the overall trend and look for the larger degree waves that are driving the market. These larger degree waves tend to have more significance and can help to provide a clearer picture of the market’s direction.
Since I have taken the larger degree as wave V, foresee an overall trend upward as shown.