In our previous update about the NASDAQ 100 (NDX), when the index was trading around 24520, we found that, according to the Elliott Wave (EW) Principle, the index is in an impulse (five-wave) move up from the early April lows, targeting 24770-25570 for an interim top. It is perfectly within the ideal target zone and reversed intra-day. Thus, the index has, as expected, entered the zone where the likelihood of a pullback, the green W-4, is high. Regardless, the green W-4 is inevitable and should ideally retrace 23.6-38.2% of the green W-3, the red target zone between 22360 and 23500. However, since in bull markets “the downside disappoints and the upside surprises,” while the 4th and 2nd waves are often equal in length, a drop to the orange target zone at 23270-23830 is more likely.