Nasdaq Elliott Wave Count

This blog has been dedicated mostly to following the S&P500 index however while this index is composed of 500 companies noted as large cap “blue chip” the Nasdaq Composite includes over 5000 companies. The Nasdaq does reflect what is commonly refered to as the “market” and in that regard the economy.

I am posting two charts showing the Elliott Wave count as I see it for the Nasdaq. I would say we are in a Daily 4th wave which means we most likely will see a retest of the 3rd wave lows with a 5th wave. Click on charts to enlarge.
The next chart shows a 5 wave pattern on the weekly chart. What then, according to Elliott wave theory, can we look forward to next? As I understand it the next wave pattern to follow is either an ABC correction or a new 5 wave count. With the passage of legislative bill H.R. 3221, the homeowner rescue bill now in congress, some of the drag of real estate on the economy may soften and we could see a rally to the upside. We will just have to wait and see.