Notable figures such as Michael Burry and Puru Saxena have taken opposing sides on what this rally means. I enjoy how Burry made a very hedged statement... noting that at 23% it was within average but did not imply the Nasdaq's rise itself predicted the future. Puru took a more affirmative view that this was more than a bear market rally.
Today's intraday price action on CME_MINI:NQ1! was a morning sell off down to support:
Price counteryeeted at an Overnight low Inflection Point into a sharp rally which has been all too common in the last many trading days.
But that price action showed the signs of a false breakout here after a long, extended rally. The Spike fits my rules and must be taken. With a stop above today's high the risk is fixed and a proper 3 to 1 down to a 50% Retracement of the recent move up from August 9th. CME_MINI:NQ1!.
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Today's price action showed a Spike on the 5 minute timeframe right at the open. The ATR Clearance was low (<70%) and it was occuring right at a potential Support which the premarket was holding. I used this as a trailing stop definition rather than an opportunity to add... but would have been a good one for a more aggressive approach.