With major technology firms due to publish their first quarter 2017 earnings results this week, its prudent to take a closer look at the basket index - NASDAQ 100. Very clear ascending coiling convergence on the daily chart. Recent January spike last week were all time highs for the index. (Other two main US Indices - Dow Jones and S&P 500 also displayed the historic peaks).
It looks though that in short term (upcoming days and weeks) Nasdaq 100 could show a pull-back from its peak 5172 level. The CD / 4th wave of Elliott Wave as shown, could be in formation and the pullback in the index could be upto 5120 (initial resistance). The next resistance could see index re-balancing further to 5000 key area. Investors who bought the basket stocks an year ago (early 2016) should see this as a great opportunity to exit on profit. Probably better to let index go further south for new entrants. Opportunities exist for intra-day short opportunities at current levels with profit taking at D. Upper bound / Resistance around 5160 or even lower should protect from any upside daily moves.
RSI peaked and now taking a breather while traders waiting for pullback to enter new positions as indicated by volumes.