Replacing the Nasdaq series with the QQQ ETF in order to include Volume and the Market Profile, we see that last week a bearish right shoulder was forming, giving interesting opportunities for short positions. Nevertheless during the second half of the week the trend reversed. The Head and Shoulders pattern prevails but we need to keep alert on the next movement because the series is just located at the Market Profile control line (yellow dotted line) which represents a balance point. The coming week is going to be interesting, the short term positioning will depend on what direction the series take. However the mid-term positioning still looks bearish to me.
What do you think about SPXS to play the impending drop?
MasteringCS
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@KristianB12, Not very familiar with the SPXS. I only know that it bets 3X on the S&P, which is very aggressive.
If you look at the S&P 500 or SPY, you can see a second lower high LH2 suggesting a bearish trend. But be careful considering that if it goes down further, it could rebound when it touches the 200 MA. In my view, when it breaks down the 200 MA and keeps there for a while, a greater correction may be coming. Dont know if it is in one month or un one year. We just need to follow the market and act accordingly.
KristianB12
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@donoso007, Yeah I wasn't planning on buying SPXS at the moment, just curious what you thought of it. I agree with sort of playing it by ear, right now I'm trading day by day and mostly trading earning reports.
UnknownUnicorn1020621
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I highly disagree, Look at your MOM indicator, and compare it to Jan area. This thing is mega bullish. Now, there will be a crash, but expect it around next year or so.