NQ's Bull Flag Played Out 8/18/2020
NQ at the daily view.
The NQ's bull flag played out a little earlier than I expected. The measured move for the bull flag would put the NQ right above 11500. What's stopping it now is my last historical resistance (orange line) which I named it the Icarus Line.
I have no idea if the Icarus Line will hold. NQ is among the most overcrowded trades (long side). Lately, market breadth has been decreasing since money is flowing into FATMANG stocks (big tech).
Institutions were distributing the NQ since July 13th. That's why the RTY or Russel got a boost in the last month. Institutions were taking advantage of the tech hype when the Robinhooders got the alert to go long on the XLK.
However, distribution phases usually end by the end of the summer... which is around this time. Meaning, the NQ may be unleashed again. Interestingly, the NQ is also in a giant ascending wedge.
With liquidity being this high, I'm not bother with any shorts (except for the VIX). I'll just wait for a pullback and long from supports. That's the easier trade.
The NQ's bull flag played out a little earlier than I expected. The measured move for the bull flag would put the NQ right above 11500. What's stopping it now is my last historical resistance (orange line) which I named it the Icarus Line.
I have no idea if the Icarus Line will hold. NQ is among the most overcrowded trades (long side). Lately, market breadth has been decreasing since money is flowing into FATMANG stocks (big tech).
Institutions were distributing the NQ since July 13th. That's why the RTY or Russel got a boost in the last month. Institutions were taking advantage of the tech hype when the Robinhooders got the alert to go long on the XLK.
However, distribution phases usually end by the end of the summer... which is around this time. Meaning, the NQ may be unleashed again. Interestingly, the NQ is also in a giant ascending wedge.
With liquidity being this high, I'm not bother with any shorts (except for the VIX). I'll just wait for a pullback and long from supports. That's the easier trade.
Comment:
I typed in high liquidity and that I would not even bother a short. I get comments and messages about shorting the NQ. I'm fascinated by how deep permabears' biases are.