Chart of the day

Where do we stand fundamentally?

Wall Street analysts highlight artificial intelligence as a key driver of Nasdaq’s growth in 2025. Companies like Nvidia have seen significant volatility, with a recent 17% drop in market value followed by a recovery. The AI sector continues to attract investor interest, despite concerns about competition from startups like DeepSeek, a Chinese AI firm.

NASDAQ is reaching the high of this cycle's third wave at 22400. This is strong near-term resistance for an upside continuation, and I see this as the end of the third wave of upside from 2000. A break above 22400 can invalidate this view and lead to an immediate extension higher in the still third wave.

We are in a possible third-wave finish here, and to confirm that, we need to see a pullback and a break below 20700 until then we are still in the powerful third wave. A breakout above the resistance level of 22400 will lead to a higher extension, and a break below 20700 will confirm the end of the third wave.

_{You can take a near-term short-trade entry with an SL above 22700 to target 20400 and lower. You can trade it with options as well by buying put options.}