Nasdaq 100 futures appear to be setting up for a head fake of the pennant in progress since July. While this could potentially be the beginning of a major breakout to the upside, volume in recent weeks has continued to fall as the price has risen. Additionally, ROC indicates that momentum has not reached levels to the degree of previous attempts at the same price level. Combined with background data about the recent reversal of funds flows to equities, the breakout probability is distinctly bearish. A head fake to the upside should be expected but is not essential.
If a true upside breakout occurs against the odds, it will almost certainly be accompanied by a substantial increase in volume and momentum.
Disclaimer: This is not advice. This is my personal opinion. Trading involves risk.
If a true upside breakout occurs against the odds, it will almost certainly be accompanied by a substantial increase in volume and momentum.
Disclaimer: This is not advice. This is my personal opinion. Trading involves risk.
