This Zig-Zag has already exceeded its probable price target (the bold red polygon). If a further decline in price occurs then the lower thin red polygon slope line will have been exceeded.

This is important because EWA3 will then generate a corrective target. The shorter term analysis indicate a high probability of this slope being broken.

Note: I have seen many other Elliott analysis using Impulse pattern labels (i.e. 1, 2, 3, 4 and 5) for this move. But EWA3, even when Impulse filters are implemented, does not find such a pattern. So while I am sympathetic to those who see this correction as a Wave 4, with a Wave 5 up to follow, EWA3 does not. Since this is the NDX, not the QQQ stock, I ran the QQQ chart from the October 2002 lows. It did find a five wave impulse but only when allowed to look for waves within the daily bars (i.e. Hidden Waves mode).

The only possibility is if what this chart labels as wave a and b of the Zig-Zag is part of a trncated fifth or similar incomplete wave off the December 2001 highs. Even when I analyzed the move off the December 2001 highs EWA3 had no problem completing the pattern -- so I don't think the February 2003 low is a truncated 5th or some other incomplete pattern. It is part of the Zig-Zag, not Wave 1 and 2 of an impulse.

Click on the black decline square off the January 20, 2004 high for a projection of what the more immediate pattern indicates.