NDX (05/12/2020) - Small correction for TVC:NDX by LagunitaLLC

FA
- 6 reasons why we will have another big drop.

-Trump was furious when it comes to Covid-19 cases => causing worries for people

-FED won't take many actions tomorrow, according to their schedule.

-Chinese inflation data missed expectation

-The oil contract will be renewed next week. Keep in mind the numbers will be really bad.
-US10Y barely holds 0.7% yield. People still buy bonds as a safe investment.
-Tech stocks have been bullish for 6 days straight. Time for correction.
-Tech stocks are overvalued. These companies are having a lot of capital from stocks.

TA
-RSI is showing lower- high: bearish
-NDX is still trading above moving average: bullish
-Squeeze indicator is heading south: bearish
-Gap has not been filled on NASDAQ, however, a pullback is expected
-Next target 9100 then a bounce.
-Volume is low: fewer buyers.
Bottom line: small bounce after the market open, then a drop in midday (Same pattern for the last two weeks).
However, please don't yolo on puts/short positions.

Good luck and have fun.

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